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HMRC internal manual

Compliance Operational Guidance

Supporting Guidance: employer compliance: guidance by subject: liaison: specialist personal tax (SPT) - HMRC charities

Employer Compliance responsibilities for charities lies within LC Individuals & Public Bodies (I&PB).

You must reassign a case to I&PB if you find it is for:

  • a charity that is being worked or has been referred to your office
  • a company controlled by a charity

If you find information relevant to a charity, or company controlled by a charity, indicating that Employer Compliance activity is required, you must forward the information to I&PB.

Assigning a case to I&PB

  • If the case is already open: Contact the PB charities team at Trinity Bridge House, Salford so the case can be assigned to them.
  • If the case has not yet been opened: Send the case with a note asking for it to be referred to PBG Risk Team for referral to OUDN workbasket: HMRC, E&C, WMBC, APEC, PBG_NHS&CHARS_C1

See Caseflow guidance for how to reassign.

I&PB teams – referral to HMRC Charities

For Public Body teams only, it is mandatory to make a referral to HMRC Charities if during a compliance check you find:

  • companies or individuals making substantial gifts to charities (over £100,000) involving
    • Cash (Gift Aid)
    • Shares/Securities
    • Real Property
  • company shares costing over £100,000 are acquired by a charity
  • it appears any person has received payments, including loans from the charity over £100,000

Referral is also mandatory when:

  • you suspect that sums claimed under Gift Aid may not have actually been paid over to the charity
  • gifts of cash or assets has been made to a charity and it appears the donor or a connected person has received something valuable as a consequence of making the donation
  • you suspect a charity, or body controlled by a charity, has been used for the purpose of unacceptable planning involving either direct taxation or VAT
  • you have any concerns about the employer’s financial involvement with a charity or a body controlled by a charity
  • you receive information suggesting that charitable funds have been misapplied or that cast doubt on the honesty or integrity of somebody connected with a charity
  • it appears any person is able to control or manipulate a charity

Send the referral to the HMRC Charities mailbox.