Nonprofit Accounting
UK charities and not-for-profit organisations must comply with the Charities SORP (FRS 102), Charity Commission reporting requirements, Gift Aid claims and administration, and VAT rules that differ significantly from commercial entities. CICs, CIOs, and charitable companies each have distinct filing obligations with the Charity Commission and Companies House.
Our nonprofit accounting services cover fund accounting with restricted and unrestricted income tracking, Gift Aid claim preparation and optimisation, VAT recovery where applicable, Charity Commission annual return filing, trustee reporting, and compliance with the Statement of Recommended Practice. We help charities maximise their resources while maintaining transparent, compliant financial records.
What's Included
Comprehensive services tailored to your industry needs
Industry-Specific UK Expertise
Key UK Challenges
Complexities you face
- Preparing accounts in accordance with Charities SORP (FRS 102) including the Statement of Financial Activities (SoFA)
- Tracking restricted, unrestricted, and endowment funds with proper allocation of costs
- Administering Gift Aid claims and maintaining donor records for HMRC compliance
- Determining correct VAT treatment — charities are not automatically VAT-exempt
- Filing dual returns to the Charity Commission and Companies House (for charitable companies)
- Managing trading subsidiary relationships and ensuring profits are Gift Aided to the parent charity
Tax Considerations
HMRC rules & reliefs
- Corporation Tax exemption — charities exempt on income applied for charitable purposes only
- Gift Aid — charities reclaim basic rate tax (25p for every £1 donated) from HMRC
- Gift Aid Small Donations Scheme (GASDS) — claim top-up on small cash donations without declarations
- VAT — charities pay VAT on purchases but may recover it on some activities; reduced rate on fuel and power
- Business rates relief — mandatory 80% relief for charities using premises for charitable purposes
- Trading subsidiary — non-primary purpose trading over £80,000 should be conducted through a subsidiary
How We Help
Our tailored solutions
- Preparation of Charities SORP-compliant accounts including the Statement of Financial Activities
- Gift Aid claim preparation and donor record management for HMRC
- Fund accounting with restricted income tracking and grant condition monitoring
- VAT recovery analysis and partial exemption calculations for charitable activities
- Charity Commission annual return preparation and filing
- Trustee financial reporting packs with governance and compliance dashboards
Ready to Simplify Your Nonprofit Finances?
Get a free consultation with our industry specialists and discover how we can help your business thrive.
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