Accountancy & tax update for charities

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Our Charity News summarises the latest accountancy and tax guidance for the not-for-profit sector.

Highlighted in this issue is information about the new Annual Return for 2023 (AR23).

This online form should be used by charities that generate yearly incomes of £10,000 or more, and must be completed within 10 months after the conclusion of their financial reporting period.

Additionally, all registered charitable incorporated organisations (CIOs) are obligated to submit this online form.

The updated form aims to provide greater simplicity for charities. The Charity Commission has streamlined the language of the questions and adjusted the information required in the AR23 form based on the size and complexity of each organisation. Larger charities, especially those with staff or international operations, need to address a broader range of questions compared to smaller, simpler charities.

Charities Standard of Recommended Practice (SORP)

On 27 March 2024 the Financial Reporting Council (FRC) published the long-awaited updated version of FRS102, the financial reporting standard that forms the basis of the rules which many charities are required to follow when preparing their annual accounts.

Not all of the changes made in the revised standard, which will come into force for accounting periods beginning on or after 1 January 2026, will impact heavily on charity reporting but there will be some significant changes.

For more information on this, plus an general overview of the charity sector download the publication here