While not-for-profit organisations don’t aim to make lots of money, they are still considered a business. That means that all finances going in and out need to be accounted for.
Non-profit organisations such as charities and social enterprises have more complicated tax needs than regular businesses. For example, a charity won’t owe Corporation Tax because there’s no profit to be taxed on. Instead, charities must register with the Charity Commission if they make over £5,000.
In order to claim for tax-exempt status, your charity must be recognised by HMRC, which can be done by filling in an online form.
Our accountants are experienced in dealing with not-for-profits and will ensure that all your financial obligations are met.