Accounting Brief Oct 09

The briefing paper from Stewardship on accounting updates was sent to the administrators mailling list on 20th October, if you would like to receive a copy then please let us know. The main points are:

• Changes in Accounting Thresholds. This may affect 2 things:
  • Whether you can prepare accounts on the simpler ‘Receipts and Payments’ basis
  • Whether you need a full audit or your accounts or whether an ‘independent examination’ is adequate.
• Gift Aid. From next April, we can only go back 4 years to make Gift Aid claims rather than 6 years. Hopefully no-one is that far behind with their claims anyway!
• PAYE penalties for late filing and late payers are being implemented from next April.
• PAYE end of year returns will have to be filed electronically from next April
• Tax return. If you receive an HMRC document requiring a tax return, do not ignore it. We are now required to complete these, even with a nil return. Penalties for not making the return!
• Minimum wage. Note the new rates from 1st October.
• Volunteers. Note the very strict requirements concerning any payments made to ‘volunteers’. Locally we have had some difficult issues to sort out here with staff that have been historically part-paid and part-voluntary.

Although not contained in the briefing paper, I am aware that HMRC have recently questioned the self-employed status of the pastors of a couple of churches (not in Salt & Light). Although this seems to be a regular occurrence, it does seem they have a dedicated unit now who are much more aware of how we operate. If you still have self-employed people ‘on staff’ you are likely to have to face a challenge at some point.

If you have any queries, please feel free to talk to Matt Biddlecombe in Oxford, David Rolles in Manchester or Mike Poulton in Basingstoke.