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Charities & Non-Profit Accountants in the UK

Charity accounting follows the Charities SORP, which requires fund accounting, specific trustee disclosures, and Charity Commission reporting. Charity accountants handle restricted and unrestricted fund management, Gift Aid claims, trading subsidiary structures, and the complex VAT partial exemption rules that apply to charitable activities.

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Accountants for Charities & Non-Profit

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Charities & Non-Profit Accounting FAQs

When does a charity need an audit vs independent examination?

Charities with income over £1 million must be audited. Those with income over £250,000 and assets over £3.26 million also need an audit. Below these thresholds, an independent examination is usually sufficient. Charities with income under £25,000 have the lightest reporting.

How does Gift Aid work?

Gift Aid allows charities to claim 25p for every £1 donated by UK taxpayers who have signed a Gift Aid declaration. The charity claims basic-rate tax back from HMRC. The Gift Aid Small Donations Scheme covers small cash and contactless donations without individual declarations.

Can charities trade commercially?

Charities can trade in pursuit of their primary purpose tax-free. Non-primary-purpose trading below £80,000 (or higher thresholds for larger charities) is exempt. Larger commercial trading should be conducted through a trading subsidiary that Gift Aids its profits to the parent charity.

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