Frequently Asked Questions

Charity accounting has specific requirements under the Charities SORP and Charity Commission regulations. Specialist charity accountants understand these complexities, ensuring your accounts meet compliance requirements while potentially saving you money through proper tax relief claims and Gift Aid management.

We offer transparent fixed-fee pricing based on your charity's income and complexity. Our fees start from as little as £49/month for small charities. Contact us for a free consultation and custom quote tailored to your needs.

Yes! We work with small charities (income under £25,000), medium-sized charities, and larger charitable organisations. Whether you're a community group just starting out or an established charity, we have the expertise to help.

Absolutely. All our services are delivered fully online through secure cloud-based accounting software. We can work with charities anywhere in the UK without the need for face-to-face meetings.

Charities are generally exempt from Corporation Tax on charitable income. However, there are exceptions for non-charitable activities (e.g., trading profits unrelated to the charity's purpose). We can help ensure you claim all applicable tax reliefs.

Gift Aid allows charities to claim back the basic rate tax (25%) on donations made by UK taxpayers. For higher rate taxpayers, you can claim the difference between your tax rate and the basic rate. We can help set up and manage your Gift Aid claims.

Yes, charities do pay VAT like any other organisation. However, charities can reclaim VAT on certain goods and services under the VAT Refund Scheme. We can advise on VAT registration requirements and help maximise your recoveries.

Charitable Companies (Ltd by Guarantee) and CIOs must file Corporation Tax returns with HMRC even if they're exempt from tax. We can prepare and file these returns on your behalf, ensuring compliance.

Yes, if your charity pays any employees or contractors, you must operate PAYE (Pay As You Earn) and report to HMRC every pay period. This includes paying staff, volunteers' expenses, and trustee remuneration (if applicable).

Auto Enrolment is a UK law requiring all employers to automatically enrol eligible workers into a workplace pension. This applies to charities just as it does to other employers. We can help set up and manage your pension duties.

Trustees can receive payment in certain circumstances, but this must be documented in the charity's governing document and follow strict rules. Many charities pay trustees for specific services (e.g., bookkeeping) rather than for their trustee role.

We offer full payroll services including RTI submissions, payslip preparation, P60/P45 processing, Auto Enrolment pension assessments and contributions, and year-end reporting. All managed fully online.

An independent examination is a lighter-touch review of your charity's accounts compared to a full audit. It's required for charities with income between £25,000 and £1 million that don't want an audit. The examiner checks the accounts against the charity's records and asks questions but doesn't carry out a full audit.

The examiner must be independent of the charity (not a trustee or connected person) and have the necessary skills and experience. They don't need to be a qualified auditor, but they should have appropriate accounting knowledge. We can provide qualified independent examiners for your charity.

The examiner will need your prepared accounts, accounting records (including bank statements, receipts, invoices), trustee meeting minutes, and any relevant policies. We can prepare all necessary documentation and work with your chosen examiner to ensure a smooth process.

An audit provides a higher level of assurance and includes testing of controls and substantive testing of transactions. An independent examination is less extensive - the examiner reviews the accounts and vouches material items but doesn't test systems in detail. Audits are required for charities over £1 million income; independent examination is an option for charities between £25,000 and £1 million.

UK charities must comply with various requirements including: filing annual accounts and Annual Return with the Charity Commission, maintaining proper financial records, keeping trustees informed of financial position, complying with data protection regulations, and ensuring activities match the charity's charitable purposes.

Non-compliance can result in various consequences including: warnings from the Charity Commission, mandatory action plans, removal of trustees, freezing of bank accounts, or in serious cases, dissolution of the charity. It's essential to stay compliant to protect your charity's reputation and legal status.

The Charity Commission recommends at least 3 trustees, though some structures can have fewer. Your governing document may specify a minimum number. Having a diverse board with a range of skills is more important than meeting a specific number. We can advise on trustee requirements for your charity structure.

Key steps include: maintaining accurate financial records, holding regular trustee meetings with documented decisions, filing accounts and returns on time, keeping the Charity Commission updated of any changes, and seeking professional advice when unsure. We can provide ongoing compliance support to help you stay on track.