Do we need to register as a charity?

You will only need to register with the Charity Commission if your annual income exceeds £5000.  If you have an annual income less than £5000 you may apply directly to HMRC for an HMRC Charity Number and qualify for a range of tax exemptions and reliefs.

In Scotland and Northern Ireland the legislation is slightly different with no £5000 threshold.  In both of those countries you will need to register as a charity and further information is available on the websites of the relevant bodies.

Applying for recognition as a Charity for tax purposes

Charities can claim tax relief on income and gains as well as claiming tax back on income received on which tax has already been paid, for example Gift Aid donations.  In order to do this you must be formally recognised by HMRC for tax purposes.

To do this you are required to complete the relevant form and submit it to the HMRC for consideration.  You will find further guidance, and the correct application form, by clicking on the link at the right of this page.

Registering as a Charity

For those with an annual income greater then £5000 you will need to apply to the Charity Commission fro recognition as a charity.  The process will require you too:

• adopt a governing document;
• complete the online application document;
• have a signed trustee declaration form; and
• demonstrate evidence of income or confirmation that the Charity Commission will assess your application even if the income threshold has not been reached.

Once you have completed the relevant paperwork you can submit it too the Charity Commission for assessment.  You can access further guidance, and the online application form, by clicking on the Charity Commission link at the right hand side of this page.

The process is very similar in both Scotland and Northern Ireland and the broad outline, above, is relevant to both countries but please make sure that you check the relevant websites to make sure you are meeting their specific requirements.