Charities

Yes. Registered charities can reclaim Gift Aid from HMRC on eligible donations made by UK taxpayers. For every £1 donated, the charity can reclaim 25p in Gift Aid, boosting the value of the donation by 25%. Donors must have paid at least as much income or capital gains tax as the charity reclaims, and a Gift Aid declaration must be in place.

Yes. Charities with an annual income over £25,000 must submit their accounts and annual return to the Charity Commission. Charities with income over £250,000 must prepare accruals accounts, while smaller charities may use receipts and payments accounts. Independent examination or audit may also be required depending on income thresholds.

Charities in the UK must follow the Charities SORP (Statement of Recommended Practice), which is based on FRS 102. This sets out how income, expenditure, assets, and liabilities should be reported. Compliance ensures transparency and maintains donor and public trust in your organisation.

A charity can carry out primary purpose trading (trading that directly furthers its charitable aims) tax-free. However, non-primary purpose trading — such as running a commercial shop or café — should be carried out through a separate trading subsidiary to protect the charity’s tax-exempt status. Profits from the subsidiary can be gift-aided back to the charity tax-free.

Registered charities benefit from a range of tax reliefs including exemption from Corporation Tax on most income and gains, Gift Aid (allowing charities to reclaim 25p for every £1 donated by a UK taxpayer), business rates relief of up to 80%, and VAT reliefs on certain purchases. Charities must ensure income is applied for charitable purposes to maintain these reliefs.

Yes. Charities with an annual income above £25,000 must file accounts and an annual return with the Charity Commission. Charities with income above £250,000 must prepare accruals accounts. Those above £1 million (or £250,000 with assets over £3.26 million) require a full audit. Smaller charities may use receipts and payments accounts. Deadlines are 10 months after the financial year end.