Charities

Charities are one of the most heavily regulated “business” sectors in the UK.

Charitable entities usually take the form of a trust or a limited company, with limited company status gradually becoming more common, especially for newer charities.

Charitable status is regulated by the Charity Commission, who see that status as a privilege, not a right.

This means that all charities must make a return and, subject to size, file financial statements annually with the Charity Commission, and those that are limited companies must also file financial statements at Companies House.

Charities invariably face issues not seen in commercial businesses, including:

• ensuring that all activities fall within the definition of primary purpose or ancillary trading;
• dealing with non-core fund raising in a tax efficient manner;
• VAT and partial exemption;
• Gift Aid;
• ensuring that annual financial statements comply with the Charity SORP;
• consideration of whether a financial audit is required.

 We have experience of dealing with all of these issues and can assist the Trustees or Directors in considering any action required.