Resources

Extension of deadlines for filing accounts from 27 June 2020

From 27 June 2020 more companies will benefit from an extension to their accounts filing deadline. The filing deadline will be extended if it falls any time from 27 June 2020 to 5 April 2021 (including these dates).

Example A private company has a 9 month filing period with an ARD of 31 October 2019. The previous filing deadline was 31 July 2020 and is extended to 31 October 2020.

The filing period is now 12 months.

Holding meetings online or by telephone during the coronavirus emergency

Guidance issued by the Charity Commission 7 April 2020

In the current situation, it is becoming increasingly difficult to hold face-to-face meetings. Some charities have clauses in their governing documents that allow them to meet virtually or to use telephone facilities, so we advise trustees to check their governing document and see if they can make amendments themselves to facilitate changes as to how or when meetings are held.

Where there is no such clause in your governing document and you decide to hold meetings over the phone or using digital solutions, we will understand but you should record this decision and that you have done this to demonstrate good governance of your charity.

Does your charity meet the small trading tax exemption?

In effect from 6 April 2019, the limits of the small trading exemption have been updated for years 2019 and 2020.

When your charity’s trading does not relate to your charity’s primary purpose, it may be exempt from tax if the turnover is below the small trading tax exemption.

Some of your charity’s profits may already be exempt from tax because they’re from a trading activity that is part of your primary purpose trading.

You can still claim an additional exemption for other trading profits if they are below the small trading tax exemption limits.

If your charity’s small trading turnover is higher than the exemption limits, then you’ll have to pay tax on all of your profits from that trade.

Your charity’s gross annual income is the total turnover before deducting tax and expenses.

This table shows how the small trading tax exemption limits are applied:

Does your charity comply with the correct accounts format?

Charity accounts which show a true and fair view must, from 1 January 2016, comply with the Charities SORP (FRS 102).                   

Does your charity apply for funds from grant-making foundations?

Grant-making foundations have for some time been requesting trustees to include in their applications for funds their charity’s summary page which has been extracted from the Charity Commission’s website. This summary includes confirmation as to whether or not annual returns and accounts have been filed within the time limits imposed by the Commission.

It is therefore essential that trustees ensure that relevant documents are filed timeously with the Charity Commission.

Does your charity make Gift Aid claims?

Still not all charities have updated their Gift Aid declarations to incorporate HM Revenue & Customs’ new wording, which should have taken effect by April 2016.

Have you downloaded your charity’s registration certificate?

If not, please log onto The Charity Commission’s website Online Services with your password and click, “Produce your Registration Certificate”.