In this section:
- Charities and tax: the basics
- Applying to HMRC for recognition as a charity for tax purposes
- How to reclaim tax on Gift Aid and other income
- Understanding and promoting types of tax-efficient giving
- Tax and charitable or non-charitable expenditure
- Charity trading profits: tax obligations and reliefs
- Tax returns for charities and Community Amateur Sports Clubs
Tax returns for charities and Community Amateur Sports Clubs
As a charity or Community Amateur Sports Club (CASC), you may qualify for a number of tax exemptions and reliefs on your income, gains and profits. However, if you have any taxable income that's not covered by a relief or exemption you must complete a tax return and send it to HM Revenue & Customs (HMRC). The type of tax return you must complete depends on how your charity is set up.
Charitable trusts are liable to pay Income Tax under Self Assessment, so if required will fill in a Trust and Estate tax return. All other charities and CASCs are treated as companies and may be liable for Corporation Tax, so will need to file a Company Tax Return.
This guide explains the type of tax return that’s right for you, when you'll need to complete one, where to get the forms, and the deadlines for filing it.
On this page:
- How your charity is set up
- When you will need to complete a tax return
- Tax returns for charitable trusts
- Tax returns for all other charities and CASCs
- Filing your tax return online
- Avoiding common mistakes
- Tax return deadlines
- Contacting the HMRC Charities Helpline
- More useful links
How your charity is set up
The type of tax return you will receive depends on whether your charity is set up as a trust or a charitable company. To find out how your charity is set up you can look at your governing documents.
Most charities are treated as companies for tax purposes as they were set up by a 'Constitution', 'Memorandum' or even an Act of Parliament. Because they're treated as companies they pay Corporation Tax.
A charity is only treated as a trust if it was set up by a trust deed or will. Charitable trusts pay Income Tax and Capital Gains Tax under Self Assessment.
When you will need to complete a tax return
Some charities have to make a tax return every year but most only have to from time to time.
You must make a tax return if your charity has:
- income or profits that's not covered by a tax exemption or relief, for example income generated from trading that wasn’t within your charity’s primary purpose - the reason your charity was set up
- used income or gains for non-charitable purposes - known as non-charitable expenditure
You must tell HMRC when you:
- receive - or think you may receive - income or gains that are taxable
- use any income or gains on non-charitable expenditure
- make any non-qualifying investments or loans
HMRC will then usually send you a tax return so you can make a formal declaration of your charity's taxable income or non-charitable expenditure.
If your charity doesn't declare how much tax it owes correctly and on time, HMRC may charge a penalty.
Find out more about tax exemptions on trading profits
Find out more about what counts as non-charitable expenditure
Find out more about qualifying investments and loans in the detailed guidance notes
Tax returns for charitable trusts
Charitable trusts pay tax under Self Assessment. So as a trustee of your charitable trust you'll have to fill in a Trust and Estate tax return - form SA900.
You'll also need to fill in the supplementary page SA907 which asks you for details of:
- any claim for tax exemptions on income, profits or gains that your charity received in the period covered by the tax return
- any non-charitable expenditure or investments
You should also send in a copy of your accounts for the period covered by the tax return.
If you prefer, you can complete and file a Trust and Estate Return online using commercial software.
Find out more about tax returns for trustees
Find out how to complete the Trust and Estate Return
Download the Trust and Estate Return forms
You can download the Trust and Estate Return form and the supplementary page SA907 from the HMRC website. There are also help notes for filling in the supplementary page.
Go to form SA900 Trust and Estate Return
Go to form SA907 Trust and Estate Charities
Download the SA907 Trust and Estate help notes
Tax returns for all other charities and CASCs
CASCs, and charities that aren't trusts, are treated as companies for
tax purposes. This means your CASC or charity may be liable for Corporation
Tax and you'll need to file a Company Tax Return - which includes form
CT600 and other supporting documents - to account for any tax you owe.
You'll also have to complete the supplementary page CT600E which asks you for details of:
- any claim for tax exemptions on income, profits or gains that your charity or CASC received in the period covered by the Company Tax Return
- any non-charitable expenditure or investments
You should also send in a copy of your accounts for the period covered by your Company Tax Return.
If you prefer, you can complete and file a Company Tax Return online using the Corporation Tax Online service.
Download the Company Tax Return forms
You can download the Company Tax Return form and the supplementary page CT600E from the HMRC website. There are also help notes for filling in the supplementary page.
Go to form CT600 Company Tax Return form and explanatory notes
Download form CT600E Supplementary pages for charities and Community Amateur Sports Clubs (CASCs)
Filing your tax return online
One of the main advantages of filing your tax returns online is that the software you use will automatically calculate any tax your charity has to pay.
Also, if your charity is a trust, the deadline for filing your Trust and Estate Return online is 31 January instead of 31 October for paper tax returns. This means you get an extra three months if you choose to file your Trust and Estate Return online.
If you want to file either a Trust and Estate Return or a Company Tax Return online, you'll need to register for HMRC Online Services. If you're filing the Trust and Estate Return and supplementary page online, you'll need to complete it using commercial software.
If you're filing a Company Tax Return and supplementary page online, you can either use:
- HMRC's free software, Online Tax Return-CT
- commercial software that has passed HMRC's testing process
File your Self Assessment tax return online
Find out how to file your Company Tax Return online
Avoiding common mistakes
If you send in a paper tax return, you can make sure HMRC processes it quickly by:
- remembering to sign and date it
- checking that you've included any supplementary pages that are needed - and making sure they're completed properly
- not including notes on the tax return like 'per accounts' or 'information to follow'
Filing your tax return online can help you to avoid making mistakes because many of the calculations are worked out for you.
Tax return deadlines
Paper Trust and Estate Returns
If you're sent a notice to complete a tax return before or on 31 July for the last tax year and you want to file a paper tax return, you must send it back by 31 October.
If you're sent a notice to complete a tax return for the last year after 31 July or for an earlier year, you must send back the completed paper tax return within three months of the date the notice was issued.
Online Trust and Estate Returns
If you file online, you're allowed extra time to complete your tax return. So when you're sent a notice to complete a tax return before or on 31 July for the last tax year, you've got until 31 January to file it online.
If you're sent the notice to complete a tax return after 31 July for the last tax year but on or before 31 October, the filing deadline is also 31 January. But if you're sent a notice to complete a tax return after 31 October, you must file your online tax return within three months of the date the notice was issued.
Company Tax Returns
The filing date for Company Tax Returns is 12 months and one day after the end of your 'accounting period'. You don't get any extra time if you file your Company Tax Return online.
Penalties for late tax returns
If your charity is sent a tax return you must complete it and send it back to HMRC within the time limits given on the forms. If you do not complete your tax return, or if you send it back late, normal penalty provisions will be applied.
You’ll find details about late return penalties in the notes that accompany all tax returns.
Paying on time
You must pay the tax your charity owes on time. If you pay tax late, HMRC will charge you interest and you may also be charged a penalty.
Find out more about Self Assessment
tax return deadlines and penalties
Find out more about penalties
and interest charges on your Corporation Tax
Contacting the HMRC Charities Helpline
For more help you can contact the Charities Helpline on Tel 0845 302 0203 (open from 8.00 am to 5.00 pm, Monday to Friday). Select option 5 for tax returns.
