Top Claimers of Gift Aid Must Submit Tax Returns

Reports from Charity Tax Group confirm that HM Revenue & Customs has issued letters to 3,000 charities with the largest Gift Aid claims requesting that they submit a tax return as part of a compliance review.

In addition to this, a random sample of several hundred community amateur sports clubs will also be required to submit a return.

The purpose of the return is to show the exemptions that the charity is claiming and to determine whether any tax is due.

Where you fail to submit the tax return on time, HMRC may issue a penalty.

When must a charity submit a tax return?

A charity must submit a tax return where it receives income that does not qualify for tax relief, or if HMRC asks you to.

A charity must submit a Company Tax Return if the charity is a limited company, an unincorporated association, or a Charitable Incorporated Organisation (“CIO”), or alternatively a Trust and Estate Self-Assessment tax return if the charity is a trust.

If you have received one of these letters and are unsure on how to complete the tax return, please feel free to contact a member of our team.

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