Legal Requirements for Accounting Records

All charities (whether registered with the Charity Commission or not) must prepare accounts and make them available on request.  All charities must keep accounting records, and prepare annual accounts which must be made available to the public on request

Charities with a gross income of more than £25,000 in their financial year are required to have their accounts independently examined or audited

Keeping accounting records

These records – for example cash books, invoices, receipts, Gift Aid records etc must be retained for at least 6 years (or at least 3 years in the case of charitable companies); where Gift Aid payments are received records will need to be maintained for 6 years with details of any substantial donors and to identify ‘tainted charity donations’ in accordance with HMRC guidance

An independent examination is an external review of a charity’s accounts and is carried out by an independent person with the requisite ability and practical experience to carry out a competent examination

An examination involves a review of the accounting records kept by the charity, and a comparison of the accounts presented with those records.  This means that all cash books, bank statements, invoices and receipts must also be made available for checking by the independent examiner

Spring Newsletter 2018

Spring Newsletter 2018

Our Spring Newsletter should have arrived with you by post – if it hasn’t please let us know by emailing us here, or download it here:

 Newsletter Spring 2018

In this edition we cover HMRC Rates and Threshold Changes, Independent Examination of Accounts, Charity Governing Document, Claiming Tax Back on Donations, Gift Aid

Charity Registration

When to apply to register your charity

Usually, you must register with the Charity Commission if your charity is based in England or Wales and has over £5,000 income per year.  The commission will take action to secure compliance if it identifies a charity which isn’t registered but should be.

If your charity is a charitable incorporated organisation (CIO) it must register whatever its income.

Charities that don’t have to register

Small unincorporated charities

If your charity is based in England and Wales and isn’t a CIO, you don’t have to apply to register it if its annual income is less than £5,000.  But you can still apply to HM Revenue and Customs for recognition as a charity to get charity tax breaks and claim gift aid.

You can apply to the commission to register this sort of charity voluntarily, but the commission will only consider applications in exceptional circumstances.  For example, if you can prove that your charity has been offered significant funds but has to provide a registered charity number before it can receive the funds.

More details can be found here