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  • FIRST POST
    • donaldfleming
    • By donaldfleming 16th Sep 17, 3:05 AM
    • 40Posts
    • 1Thanks
    donaldfleming
    Trust/Charity: Submission of Tax Return
    • #1
    • 16th Sep 17, 3:05 AM
    Trust/Charity: Submission of Tax Return 16th Sep 17 at 3:05 AM
    I’m treasurer of a small church which is a trust, a registered charity and registered with HMRC for Gift Aid repayment. Its Income is under £15000. This is attributable to donations. No trading activities are undertaken.

    Recently, HMRC sent the church a letter asking it to make a Tax Return for 2016-17. This is the first one we've had in my time as treasurer (six years).

    I replied and queried whether the church had a legal obligation to make a return. I wrote:

    ‘Other than donations, its (the church) only income is a small amount of bank interest, which is paid gross. In the year 2016-17, this amounted to under £100.

    ‘Due to the above, I understand that the church does not have a legal obligation to make a tax return for 2016-17 and that if present circumstances continue, under present legislation, it has no obligation to make tax returns in future years.

    ‘Could you please confirm, in writing, that this is indeed the case.’

    HMRC replied:

    ‘All charities are required to file tax returns when requested to do so by HMRC.’

    Can you confirm that the above is true? Relevant legislation and test cases would be useful to know.

    If it isn’t true, how would I go about presenting a case to HMRC against submitting a Tax Return?
Page 1
    • Pennywise
    • By Pennywise 16th Sep 17, 6:32 AM
    • 9,314 Posts
    • 16,900 Thanks
    Pennywise
    • #2
    • 16th Sep 17, 6:32 AM
    • #2
    • 16th Sep 17, 6:32 AM
    Surely it's quicker to just submit one?
    • Robin9
    • By Robin9 16th Sep 17, 9:19 AM
    • 1,835 Posts
    • 1,192 Thanks
    Robin9
    • #3
    • 16th Sep 17, 9:19 AM
    • #3
    • 16th Sep 17, 9:19 AM
    As a registered charity do you do a annual return to the Charity Commissioners?

    I've been associated with Church accounts for many years and never done a HMRC return.
    Never pay on an estimated bill
    • 00ec25
    • By 00ec25 16th Sep 17, 9:36 AM
    • 5,315 Posts
    • 4,662 Thanks
    00ec25
    • #4
    • 16th Sep 17, 9:36 AM
    • #4
    • 16th Sep 17, 9:36 AM
    As a registered charity do you do a annual return to the Charity Commissioners?

    I've been associated with Church accounts for many years and never done a HMRC return.
    Originally posted by Robin9
    by law they must submit a return to the Charity Commission since their income is more than £10k, but that is not the point.

    the point is HMRC have exercised their right to ask anyone to submit a tax return, therefore it must be submitted.

    Whether one is not normally required to do so is irrelevant.

    Now that one has been asked for it must go in and must continue to be submitted each year henceforth until HMRC expressly write to say they no longer want them.
    • jimmo
    • By jimmo 16th Sep 17, 10:29 PM
    • 1,887 Posts
    • 2,354 Thanks
    jimmo
    • #5
    • 16th Sep 17, 10:29 PM
    • #5
    • 16th Sep 17, 10:29 PM
    HMRC replied:

    ‘All charities are required to file tax returns when requested to do so by HMRC.’

    Can you confirm that the above is true? Relevant legislation and test cases would be useful to know.
    Originally posted by donaldfleming
    Yes it is. Section 8(2) Taxes Management Act 1970.
    http://www.legislation.gov.uk/ukpga/1970/9/section/8/enacted
    I'm not aware of any test cases.
    • donaldfleming
    • By donaldfleming 17th Sep 17, 3:14 AM
    • 40 Posts
    • 1 Thanks
    donaldfleming
    • #6
    • 17th Sep 17, 3:14 AM
    • #6
    • 17th Sep 17, 3:14 AM
    Good point. It may come to that.
    Last edited by donaldfleming; 19-09-2017 at 4:59 AM.
    • donaldfleming
    • By donaldfleming 17th Sep 17, 3:17 AM
    • 40 Posts
    • 1 Thanks
    donaldfleming
    • #7
    • 17th Sep 17, 3:17 AM
    • #7
    • 17th Sep 17, 3:17 AM
    Surely it's quicker to just submit one?
    Originally posted by Pennywise
    Good point. It may come to that.
    • donaldfleming
    • By donaldfleming 17th Sep 17, 3:18 AM
    • 40 Posts
    • 1 Thanks
    donaldfleming
    • #8
    • 17th Sep 17, 3:18 AM
    • #8
    • 17th Sep 17, 3:18 AM
    As a registered charity do you do a annual return to the Charity Commissioners?

    I've been associated with Church accounts for many years and never done a HMRC return.
    Originally posted by Robin9
    Yes. The charity is registered with OSCR
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