Tougher scrutiny of applications to register a new charity, with joint examination by the Charity Commission and HMRC

The Public Accounts Committee criticised the Commission’s conduct in the Cup Trust affair – both for registering the Cup Trust as a charity and for its delay in taking regulatory action against the charity.

As a result, applications for charitable status will now be more heavily scrutinised. The Commission is also developing a joint portal with HMRC, so that charities will apply simultaneously for registration as a charity with the Commission and for recognition as a charity for tax purposes with HMRC. There will still be two registration processes, but the information will only need to be entered once. In particular, the Commission will consult HMRC before registering any charities where it has concerns about the proposed trustees, or where charities are based in ‘tax havens’. As part of its increased scrutiny of charities, the Commission has also announced that it intends to take a ‘much tougher’ approach to charities that repeatedly fail to file accounts and recently opened an inquiry into 12 charities that have not filed accounts for two years.

IBB Solicitors’ specialist charities solicitors have experience in delivering practical commercial advice to charities and not for profit organisations and those who work with them. For advice, contact a charities solicitor: call us on 08456 381381 or email charities@ibblaw.co.uk.