1. Overview

As a charity you can get certain tax reliefs. To benefit you must be recognised by HM Revenue and Customs (HMRC).

Charities don’t pay tax on most types of income as long as they use the money for charitable purposes.

You can claim back tax that’s been deducted, eg on bank interest and donations (this is known as Gift Aid).

When you need to pay tax

Your charity may need to pay tax if you’ve:

  • received income that doesn’t qualify for tax relief
  • spent any of your income on non-charitable purposes

You need to complete a tax return if your charity has tax to pay.

Community amateur sports clubs (CASCs) get different tax reliefs.