Returns - Frequently Asked Questions

Does Self-Assessment apply to charities?

Yes, for trusts since 6 April 1996, and for other charities for accounting periods ending on or after 1 July 1999.

Do all charities receive returns each year?

No, we select a sample of charities annually and send them returns.

Why should charities self assess when their income and gains are exempt?

Without a return we can't be certain all the income is exempt.

Must we complete a return if we receive one?

Yes, once selected you must complete the return in the same way as every other company or trust.

What should be shown on the return?

The main return is for non-exempt amounts only. But there are supplementary pages, which must be completed to claim exemption for the period in question.

How do we get the supplementary pages?

You can telephone our order lines or download the pages from the Inland Revenue website.

Trusts - Orderline 0845 9000 404 ask for SA907 or to download our trust forms

Companies - Orderline 0845 300 6555 ask for CT600E or to download our business forms.

If we receive a return when must it be sent back?

There are different rules depending on whether the charity is a trust or treated as a company for tax purposes.

For a trust: -

by 31 January following the tax year to which it relates;

or

within three months from date of issue if this is later.

For other charities:-

the latest of the following dates:-

12 months after the return period;

12 months after the accounting date (when accounting date and return date don't match);

3 months after receipt of the notice to file.

What if we are late sending the return back?

You will be charged penalties.

What if we have taxable income or gains but haven't received a return?

You must tell us. Charities have the same obligations as any other taxpayer to notify the Inland Revenue of any liability they may have.

Do we still need to send you accounts every year?

No, not unless we have sent you a return to complete. The charity accounts should be sent back with the completed return and supplementary pages.

What happens if a return is received for the wrong accounting period?

If the charity is a trust, complete it for the tax year ended 5 April. If the charity is a company, change to the correct dates and complete it for that period.

How do we know if our charity is a trust or a company?

If your charity was set up by a Trust Deed, Will or Settlement - it's a Trust for tax purposes otherwise it's treated as a company.

Do we have to pay tax?

Most charities will not have to pay tax.

What if I get a payment demand?

Where no tax is due simply return them to the Collector of Taxes showing amount due as "Nil".

How does Self Assessment affect our claims?

We will usually continue to repay as normal even if a return has been sent. Further repayment can be claimed on the supplementary pages. But we would prefer you to claim on the R68(2000) with supporting schedules.