Charities & Not For Profit

Charities and Not for Profit organisations are not exempt from tax as a business cost and compliance requirement.

The organisation may not pay corporation tax, but it will have to consider direct taxes on employment, indirect taxes such as VAT and taxes on transactions such as Stamp Duty.

For Charities and Not for Profit organisations, these taxes can still represent a significant cost which will have a direct impact on the financial wellbeing of the organisation. The trustees, management and directors should implement a strategy that ensures all tax compliance requirements are met and ensures that tax costs are pro-actively managed to preserve the organisation’s cash funds.

What we do

Our Charities and Not For Profit Taxation team help trustees, management and directors to manage the tax costs and compliance requirements of the organisations they represent.

We advise Charities, Not for Profit organisations and Social Enterprises such as Co-Operatives, Industrial & Provident Societies and Community Interest Companies.

Our team can advise the organisation and stakeholders on the following key issues:

  • Ensuring that all tax compliance requirements are met pro-actively and robustly
  • How to meet new or increased compliance requirements such as Auto-Enrolment and Real Time Information obligations
  • How to manage employment costs through the implementation of tax efficient flexible benefits arrangements or salary sacrifice arrangements
  • How to optimise the corporate structure so that trading activities can be carried out whilst retaining Charitable or Not for Profit status
  • How to structure the organisation to maximise VAT recovery or minimising “blocked” VAT
  • How to raise funding or improve cash flow by access tax relief mechanisms such as Gift Aid, the Social Investment Tax Relief, Research & Development Expenditure Relief, Creative Sector Tax Reliefs (including Theatre Tax Relief) and the Community Amateur Sports Club mechanism