13 June 2019
HMRC have announced that they are going to be writing to 3,000 charities (those with the largest Gift Aid claims) to ask them to complete a tax return, whether or not they have previously been exempt from submitting a tax return. Letters started to be sent out to the selected charities at the end of May 2019, and charities are being encouraged to seek professional advice as early as possible.
A random sample of CASCs (Charities & Community Amateur Sports Clubs) will also be asked to complete tax returns.
The letter explains that whether charities are limited companies, unincorporated associations or CIOs (Charitable Incorporated Organisations), the law requires them to submit a company tax return if they have income or gains on which tax may be due and on which they cannot claim an exemption or relief, or if they receive a notice from HMRC to file a tax return – even if they have previously claimed exemption.
HMRC say that completing the return will show the exemptions being claimed and if any corporation tax is due, and that the return must be filed, even if no tax is due.
Returns should be filed online, together with the accounts, using approved software, so please contact your local UHY charity specialist adviser as soon as possible, if you receive a letter.
Alternatively, fill out our contact form here.
