SV May newsletter
In our newsletter this month, we mark Fundraising Week by offering tips on how the fundraising and finance functions can work together harmoniously. We give you the latest charity tax updates as well as shining our client spotlight on Contemporary Art Society, whose recent project has been in the news.
Click here to view the full newsletter and don’t forget to subscribe to our mailing lists if you want to continue receiving our newsletter!
SV April newsletter
Click here to view our latest newsletter. This month, we update you on recent charity finance sector news. As April is Bowel Cancer Awareness Month – our client spotlight is on Bowel Cancer UK and Beating Bowel Cancer. We caught up with SV alumni Bex McGann to discuss her experience training and working with us and how skills gained at SV have been a key asset in her new role. Don’t forget to book your place at the Charity Accountants’ Conference with the early bird discount!
Better Society Awards
We’re glad to have been shortlisted in the Consultancy of the Year category for the 2018 Better Society Awards!
SV alumni – where are they now?
2018 marks 30 years since we started training ACA accountants! After completing the ACA training, many of our people have stayed with us long term to serve our clients and many have found their calling as financial leaders within charities.
We’ve caught up with Mark Mark Burrage – Associate Director of Finance, CLIC Sargent to get an update on what he’s been up to since training and working with us. Click here for the full article.
HMRC and international payments
A charity’s general exemption to corporation tax (or income tax for a trust) applies provided the charity applies its income within its charitable objects. However, for payments made outside of the UK there is an additional condition. The charity must be able to clearly demonstrate that it has taken steps that are ‘reasonable in circumstances’ to ensure that the payment is applied with its charitable objects. This condition has always been there but in our experience the practical application of what HMRC deem ‘reasonable’ has not been tested.
In recent weeks we have been contacted by a couple of clients where HMRC have sought specific assurances on how the charity is fulfilling this condition. This may be coincidental or it may prove part of a growing trend.
It is reassuring that the questions being asked by HMRC are consistent with expected good practice for international NGOs in terms of partner due diligence, partner agreements and monitoring and reporting processes. These are controls that we consider on all our international NGO external audits.
However, if there are risks here they apply to charities that do not regularly make international payments but may do so on an occasional basis. And potentially there are risks for charities in international affiliate structures where there may be less rigour in the set up and monitoring processes of a new project by virtue of working through affiliates.
Do not let HMRC have cause to charge your charity tax for these reasons. If you are in any doubt about whether you are managing this risk sufficiently contact either Jonathan Orchard or your SV engagement partner.
Charity Accountants’ Conference 2018
We’re partnering with The DSC again for our 27th annual Charity Accountants’ Conference! We’ll be in Birmingham this year – more details and booking information to follow but in the meantime, save the date: **20-21 September**
Our first newsletter of 2018!
In this month’s SV newsletter, we give you our thoughts on the likely financial risks facing our clients this year. Windle Trust International is in the spotlight as one of our newer clients and we’re also offering a special January sale on our VAT Handbook for all of our readers!
Click here to read the newsletter and email firstname.lastname@example.org if you would like to receive them monthly directly to your inbox.
Welcome to 2018
It’s the time of year for making bold/foolhardy predictions about what will happen in the coming year. At SV Towers we have put our heads together on what we believe will be some of the likely financial and related risks facing our clients in 2018.
Our non-exhaustive list includes:
• GDPR (of course) – the May 2018 effective date is fast approaching. Less of a prediction and more of a matter of fact.
• We hope that as the year progresses charities will have more clarity on the impact of Brexit – particularly in terms of available future funding streams. Anyone for a European subsidiary?
• The potential financial implications for social care charities of the retrospective application of the sleep-ins ruling from HMRC will become more apparent. We are expecting a result of the court action being brought by Mencap in March 2018.
• The result of the Charity Commission’s consultation process on the annual return will be announced. We hope that this will not result in any onerous new reporting requirements for charities.
• Also at the Charity Commission – a new chair will be appointed. Might this new appointment shift the tone of the Charity Commission away from some of its more hard-line stances on compliance issues?
• Many charities have already adopted the new disclosure requirements in the trustees’ report on fundraising activities arising from the latest Charities Act (2015?). These will be required for all charities for their 2018 accounts (including Dec 2017 year ends).
• And we expect a final definitive ruling on whether paying up profits from a trading subsidiary should be treated as a donation or a distribution and what the associated implications will be.
A lot more will happen besides and we will keep you informed of these and other key developments as the year progresses through our monthly newsletter. But there is no need to wait for the newsletter – you can get information as it happens by signing up to our Twitter feed and LinkedIn groups.
Seasons greetings to all of our clients and contacts. We wish you all an enjoyable and restful break over the Christmas period.
2017 has been a busy year for us. We’ve expanded our team in the Midlands allowing us to better deliver external audits and risk and assurance work for our regional client base. We won the Better Society Accountancy Company of the Year award for the third time and came out on top for charity expertise in the Charity Finance Audit Survey. A huge thanks to our clients who have given us some valuable feedback on our work this year and we look forward to working with you all in the new year.
Charity Finance Audit Survey
We are delighted to have come out on top for expertise in the charity sector with 100% of our clients rating our charity expertise as good. We also ranked in the top 5 for overall service in the Charity Finance Audit Survey this year. Huge thanks to our clients who participated in the survey!