Here’s your monthly charity sector compliance update – albeit following a quieter month for our regulators.
SORP 2019 unlikely
Since the launch of the Statement of Recommended Practice (SORP) 2015 FRS102, the Sector has been waiting with baited breath to see when the next update would happen.
It was widely anticipated that there would be a triennial review by the Financial Reporting Council (FRC) of new UK GAAP – with the first being in 2019. Any changes were expected to apply to accounting periods commencing on or after 1 January 2019. The Charities SORP was to be updated by the SORP committee at the same time.
According to Civil Society, the 2019 SORP update has been postponed, although the FRC will be continuing with its GAAP review.
- Salient points of note are:
- No major changes are expected as part of this review
- Existing charities SORP to remain until further notice
- SORP committee considering dropping separate categorisation of support costs on the basis that this adds little value to charity financial reporting
- Any proposed changes to SORP will be drafted and circulated as part of a consultation exercise.
ICSA: The Governance Institute – Charity trustee recruitment guide
Guidance has been published for charity trustees to support them in recruitment for new board members. A survey by charity Getting On Board in May found that 74 per cent of respondents had difficulty recruiting trustees.
“Charities must ensure that trustees are appointed in the appropriate manner. Failure to do so could result in the trustee body being in breach of trust, and in some severe cases mean that none of the trustees are legally able to make any decisions as they were not appointed correctly.”
Download the guidance document here.
Charity Finance Group – A Brexit that works for everyone
The Charity Finance Group (CFG) published their latest report on 28 July 2017 in to the impact of a ‘clean Brexit’.
Highlights include considerations around:
- Leaving EU could ‘unlock financial resources and cut red tape’
- ‘Clean Brexit’ poses ‘less risk’ to voluntary sector than remaining in the Single Market and customs union
- Reducing tax burden on charities could create 50,000 more jobs
Read the full report here.
HMRC – GASDS: How to claim top-up payments
On 21 July 2017 HMRC updated their guidance around claiming top-up payments under the Gift Aid Small Donations Scheme.
From 6 April 2017, you can claim on donations made using contactless technology, such as a contactless credit or debit card. Prior to 6 April 2017 top-up payments were only available on cash donations.
See the full updated guidance here to ensure that your clients are up to speed and not missing out on vital funds.
OSCR blog watch
The Scottish Regulator has published an Annual Return Submission Reminder – a helpful recap of filing deadlines with a handy downloadable guidance for completion of the Annual Return.
Here’s our monthly round-up of (and links to) key consultation opportunities and those closed, pending feedback.
The following consultation is currently open and inviting a response:
- Charity Tax Group – Potential new Welsh taxes – opened 5 July 2017. The Welsh Government Finance Secretary will suggest that taxation could be used to change behaviours or to discourage activity which has negative social impacts. Email FinancialReformMailbox@wales.gsi.gov.uk to get involved.
The following consultations are closed with feedback analysis pending – watch this space for an update in future briefings:
Charity Commission for England and Wales:
- Updating the framework for independent examination – closed on 30 September 2016 but was intended to apply to accounting periods ending on or after 31 March 2017.
- Reporting serious incidents in charities – closed on 12 January 2017.
- Annual return 2017 – closed on 9 March 2017
- The use and promotion of complementary and alternative medicine (CAM): making decisions about charitable status – closed on 19 May 2017. This consultation is about the Commission’s approach to deciding whether an organisation which uses or promotes CAM therapies is a charity.
- Northern Ireland Executive
- review of business rates -closed date 16 February 2017. all the changes proposed in this paper require changes to legislation, to be approved by the NI Assembly. For this reason, the earliest the measures can start to be introduced is the start of the financial year after next: 1 April 2018.
- Charity Tax Group – taxation of employee expenses – closed 10 July 2017 – you can review the key consultation objectives and questions here.
- HMRC – withdrawal of statutory concessions – closed on 7 March 2017
- HMRC – Draft legislation: the Value Added Tax (Refund of Tax to Museums and Galleries) (Amendment) Order 2017 – published 27 March 2017, closed on 21 April 2017
Consultation responses have been published from the following since last month’s round-up: