Charities and tax
Pay tax
If your charity has income that does not qualify for tax relief you must complete a tax return.
If you have no tax to pay, complete a tax return only if HM Revenue and Customs (HMRC) asks you to.
If your charity’s income is over £10,000 you must submit an annual return to the Charity Commission.
Company Tax Returns
Complete a Company Tax Return if your charity is a limited company or unincorporated association. Include the supplementary pages for charities and community amateur sports clubs (CASCs).
A charity is a limited company if it was set up by a:
- constitution
- memorandum and articles of association
- royal charter or Act of Parliament
Limited companies must also send annual accounts to Companies House.
Trusts
Complete a Trust and Estate Self Assessment tax return if your charity is a trust. A charity is a trust if it was set up by a trust deed or will.
Penalties and deadlines
You must complete a tax return when HMRC asks you to, even if no tax is due.
You may have to pay a penalty if your tax return is late or you do not complete one when you should.
The deadline depends on whether you complete a Company Tax Return or a Self Assessment tax return.