Not for Profit
You need to keep a record of all finances going in and out of any business, including a not for profit business, so that you can complete a full set of accounts.
Wondering how to manage your accounts for a non-profit business?
While non-profit businesses don’t make earning lots of money a priority, they are still a business. This means that they need to operate in the same way as any other business.
However, charities, social enterprises and other non-profit organisations have more complicated tax needs than regular businesses.
For example, a charity won’t need to pay Corporation Tax because there’s no profit to tax. Charities must instead register with the Charity Commission.
What does a non-profit need to declare and pay?
Your first step though is to make sure your non-profit is legally recognised by HMRC. This is really important because if you don’t tell HMRC you’re a charity, they’ll assume you’re an ordinary business trying to avoid tax. It doesn’t matter whether you’re exempt or not, if HMRC doesn’t know this, you could end up with some hefty fines. Don’t run that risk!
To tell HMRC you have a non-profit organisation, you can do this easily by filling in an online form on the government’s website.
How can Countplus help your non-profit?
We have plenty of experience in dealing with non-profits and will make sure that you’re doing everything correctly and accurately. We can help you with:
Non-profit business tax can be made simple by enlisting the help of one of our experienced accountants.
We’ll take care of all your tax responsibilities so you can focus on growing your non-profit and helping those who need it. Get in touch with Countplus today to find out more.