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Tips for Charities

  • All the Charities must prepare accounts and make them available on request. Charities with gross income of over £25,000 must by law prepare accounts and an annual report as well as an annual return. Failure to submit these to the Charity Commission within 10 months of the financial year end could trigger an investigation.
  • If your gross income is less than £250,000 it is not compulsory for non company charities to do accruals based accounting under the SORP.
  • Your gross income has to be at least £25,000 for there to be a need for an Independent Examination.
  • Charities need only have their financial statements audited if their gross income is over £1m. If you wish to benefit from this then the necessary provisions need to be put in place at your AGM.
  • All Charities are required to report on the public benefit they provide in any Trustee’s Report.
  • Interest received on bank accounts representing restricted funds must be credited to the restricted fund to which it relates.
  • All Charity advertising is now ZERO rated for VAT purposes provided the supply is one of third party advertising to a charity.
  • Small scale fundraising events now qualify for VAT exemption.
  • For non-qualifying events aim for a basic minimum charge with the balance as a donation which is outside the scope of VAT.
  • Appoint a Money Laundering Reporting Officer and train your staff to be aware of the Money Laundering Regulations.

For further information email us at charities@moco.co.uk

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