Registered charities
Organisations reporting to the Charity Commission and their trustees.
Specialist Accounting
Charity & Trust Accounting
Accounts, tax, registration and compliance support for charities, trusts and community organisations.
Overview
How we help with Charity & Trust Accounting
Charities report to trustees, funders and the Charity Commission as well as HMRC. The reporting requirements are different, and so is the accounting behind them.
We prepare charity accounts under the Charities SORP, distinguishing restricted, unrestricted and designated funds properly, and produce the trustees' annual report to accompany them. Where an independent examination is required we can arrange or support it.
We also handle the tax side: Gift Aid claims including the small donations scheme, the treatment of trading activity and when a trading subsidiary is needed, plus VAT, which is rarely straightforward for charities.
The accounting basis itself depends on structure and size. Non-company charities with income under £250,000 can prepare accounts on the simpler receipts and payments basis; charitable companies, and any charity above that threshold, must prepare accruals accounts under the Charities SORP regardless of size. We confirm which basis applies before setting the scope, since it changes both the work involved and what the accounts can show trustees.
What's included
Everything covered in this service
The scope is agreed around the organisation's legal form, governing document, reporting requirements, fund structure and available records. It does not assume that an independent examination and an audit are interchangeable. Day-to-day transaction records can be supported through bookkeeping, employment reporting through payroll services, and incorporated charities may also need Companies House compliance. Official guidance on preparing charity accounts is available from the Charity Commission on GOV.UK.
- Charity accounts prepared under the Charities SORP
- Restricted, unrestricted and designated fund accounting
- Trustees' annual report preparation
- Independent examination support
- Gift Aid claims and the small donations scheme
- Charity VAT, trading subsidiaries and rate relief
Who it's for
Built around how you actually operate
Trusts and foundations
Grant-making and family trusts needing accounts and tax returns.
Community organisations
CICs, clubs and community groups with reporting obligations.
FAQs
Charity & Trust Accounting: common questions
Does our charity need an audit?
It depends on income and asset thresholds and on what your governing document says. Many smaller charities need only an independent examination rather than a full audit.
Can we claim Gift Aid on all donations?
Only on qualifying donations from UK taxpayers with a valid declaration, and not where the donor receives a benefit above the permitted limits. Records need to support each claim.
What records should a charity provide for its accounts?
The records normally include bank statements, income and expenditure detail, grant information, Gift Aid records, payroll data, restricted-fund movements and trustee approvals relevant to the reporting period.
Is an independent examination the same as an audit?
No. They are different forms of external scrutiny with different eligibility rules and work requirements. The appropriate route depends on the charity's circumstances, governing document and applicable thresholds.
Do we have to register with the Charity Commission?
Charities in England and Wales with income over £5,000 normally need to register, unless they are an excepted or exempt charity such as certain religious or educational bodies, or are structured as a Charitable Incorporated Organisation, which must register regardless of income. Registration brings public reporting obligations that unregistered small charities do not have.
How much can we trade before we need a trading subsidiary?
HMRC's small trading tax exemption lets a charity trade up to a limit based on a percentage of its income, subject to an upper cap, before the profits become taxable. Above that limit, running the trading activity through a subsidiary company that Gift Aids its profits back to the charity is the usual way to keep the tax position clean.
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Let's talk about Charity & Trust Accounting
Tell us the organisation type, year end, income sources, restricted funds and filing or examination requirement. We will confirm the records needed and the reporting scope.
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