Audits by HMRC Charities - before the audit

3 What happens when my charity is selected for audit?

3.1 A member of the audit team will contact you at least 4 weeks in advance to arrange a convenient date and venue for the audit.

3.2 The main part of any audit is a detailed review of the documentation associated with a claim, including Gift Aid declarations and banking records. You will be advised in advance about:-

• the records the auditor will need to see during the visit.
• whether the auditor intends to review all of the records supporting a claim or a sample of those records.

3.3 We may also issue you with a questionnaire (PDF 55K) to help our auditor to get a better understanding of the relevant issues and the areas that will need to be covered during the visit.

3.4 If the proposed review date is not convenient or if you have any problems providing the records requested, you should discuss this with the auditor as soon as possible.

3.5 The auditor will work with you to help resolve any difficulties and to schedule appropriate dates for the review. If it is likely to be helpful, an informal meeting can be arranged before the review visit itself.

3.6 Where a charity can show that (before it received notification of an HMRC audit) it has embarked on a programme to identify donors for whom Gift Aid declarations are missing (and to obtain declarations from them) this work may be continued to an agreed deadline and the audit review scheduled accordingly.

3.7 Normally, our auditor will visit the place where the charity’s records are kept. When confirming arrangements for a review visit, please ensure the auditor knows where your records are kept. If any of your records are stored elsewhere or held by a third party, please tell the auditor and agree on arrangements for those records to be made available.

3.8 For some smaller charities we may ask for the records to be sent to our office for review. If you are asked to send your records to us but would prefer our auditor to visit please let us know.