The Charity Tax Group has reported that the first of the letters sent by HMRC to charities and Community Amateur Sports Clubs (CASCs) to notify them of the need to submit a tax return this year are now in the process of being received by their recipients.
As part of a compliance review HMRC is requesting tax returns from the 3,000 charities with the largest Gift Aid claims, and several hundred CASCs. The letter sent by HMRC explains that charities required to submit tax returns this year will need to demonstrate the exemptions being claimed and any corporation tax due.
For some charities and CASCs this may be the first time such a request has been received, or the first such request received for some time - and in such cases, the HMRC guidance on the tax return required, including the supplementary pages CT600E relating to charity exemptions, may be useful.
All charities and CASCs receiving the request for a tax return should note that failure to submit the tax return requested on time may result in the imposition of a penalty by HMRC – even if no tax is due.
Charities and CASCs should therefore look out for a letter from HMRC in the next few weeks, and take steps to ensure the required tax return is submitted on time in due course.