April 2010 Budget Small Print

Although the budget on the surface appeared not to be too significant in terms of churches and charities, there was a lot of small print!

Stewardship have done a very helpful briefing which points out a number of pitfalls and areas where we need to exercise care! If you have not received this please contact the European Office

Although it is a fairly lengthy document, there are also action points following each item if you want to reduce the amount of reading.

As they say, the Finance Act 2010 was rushed through parliament and became law, without HMRC having opportunity to publish guidance on some of the items, which is clearly unhelpful!

• One factor is the introduction of a new tax definition of ‘charity’ which includes the need to show that churches are managed by ‘fit and proper persons’. This will apply to the trustees / directors, treasurer, secretary, any cheque signatories, and presumably anyone else who plays a major role, e.g. administrator, operations manager.
• Do you have a new church plant? How are you managing the finances for it? Again, a factor covered by the Briefing.
• HMRC have introduced a new form – the Charities Variation Form. Any relevant changes need to be notified!
• HMRC have also introduced an online replacement for the R68 Gift Aid claim form.
• Finally, if you thought all that was enough, there are changes to the International Expenditure rules – points to be watched if you send money overseas.