This article was last updated on 3 April at 14:59.

This article was last updated on 3 April at 17:25.
Although the Government appears to be making some welcome concessions in respect of individual Gift Aid, corporate Gift Aid is less flexible due to the nine month payment deadline and the potential for ‘wasted charitable donations’, both of which are enshrined in tax law.

Charity trading subsidiaries where income has dropped off may therefore need to reflect, plan ahead and take early action in order to avoid:

1. Unexpected corporation tax liabilities due to insufficient cash and/or distributable reserves to pay up previously generated profits
2. Not being able to claim tax relief in respect of a previously made donation (a ‘wasted charitable donation’) due to insufficient profits

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The March 2020 Budget included changes to the pensions Annual Allowance (AA) for higher earners effective from 6 April 2020. The AA is the maximum amount of tax-relieved pension savings accrual in a year and this is to remain at £40,000. However, for those on higher incomes, the annual allowance is reduced by £1 for every £2 […]

As independent schools face the prospect of being closed for a prolonged period, all are busy revisiting their financial forecasts and considering the potential implications on their finances. Many will be seeking additional finance in the form of overdrafts and loans to ensure they have sufficient funds available in these uncertain times. From discussions with our clients, the banks are being supportive. However, in most cases, any finance will be secured on the assets of the school.

The Chancellor has announced a significant assistance package for self-employed individuals adversely affected by the COVID-19 crisis. Having spent considerable time devising a method of assistance for the self-employed, the Chancellor’s statement also included the intention to find an equitable balance between the employed and self-employed, once the immediate crisis is over. This is a potentially significant declaration and may see increased tax and National Insurance costs for the self-employed going forward.

This article was last updated on 26 March at 10:32. Content of Trustees’ Annual Report COVID-19 will have a significant impact on the drafting of Trustees’ Annual Reports. Each charity will need to consider the impact of COVID-19 on its activities, financial position and future plans. The key areas of the Trustees’ Annual Report where we […]

Events have happened very quickly and the response of charities to these new challenges have varied widely as their sectors have demanded different responses: arts and culture organisations that run theatres and other for-hire spaces have had to close; fundraising charities have had to reforecast and anticipate the loss of income from cancelled public events and fundraising opportunities; and independent schools have activated their business continuity plans and are providing remote learning for their students.

There are a number of financial management and reporting tools that may lend themselves to further consideration in these times and may help in the short term to bridge the gap and provide more available finance, or at least identify potential funding options.