Charities and tax

5. Pay tax

If your charity has income that doesn’t qualify for tax relief you must complete a tax return.

If you have no tax to pay, complete a tax return only if HM Revenue and Customs (HMRC) asks you to.

If your charity’s income is over £10,000 you must submit an annual return to the Charity Commission.

Company Tax Returns

Complete a Company Tax Return if your charity is a limited company or unincorporated association. Include the supplementary pages for charities and community amateur sports clubs (CASCs).

A charity is a limited company if it was set up by a:

Limited companies must also send annual accounts to Companies House.

Trusts

Complete a Trust and Estate Self Assessment tax return if your charity is a trust. A charity is a trust if it was set up by a trust deed or will.

Penalties and deadlines

You must complete a tax return when HMRC asks you to, even if no tax is due.

You may have to pay a penalty if your tax return is late or you don’t complete one when you should.

The deadline depends on whether you complete a Company Tax Return or a Self Assessment tax return.