aadil
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Charity status in the middle of the financial year

Charity status in the middle of the financial year

Client is a Not For Profit company. The yearend is 31 December.

 They are expecting to be registered as Charity by the end of March 2016.

Am I correct in thinking that Charity status would trigger a new financial year? Should we extend the 31/12/15 year to 31/3/16, and prepare 15 month accounts to 31/3/16?

Then start afresh in Sage from 1/4/16, as a charity?

What's the best way to deal with this?

Thanks in advance for your help.

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By aadil
23rd Feb 2016 10:39


Hello all

 

I would appreciate your thoughts.

 

Thanks

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No change

Charitable status is conferred by the wording of the objects in the Mem and Arts not by getting a charity number of the Commission. Therefore if you are granted a charity number that means you are a charity now and should be using the SORP to prepare the accounts. There is no need to change the accounting date, just make sure you comply with the charities SORP and submit you next accounts to both the Charity Commission and Companies House. 

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By aadil
24th Feb 2016 09:56

Thanks Steve

Much appreciated.

 

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24th Feb 2016 11:56

I think that this is correct - on your annual return / Charity Commission loging you would set the year end for 31Dec16. You then file the accounts.

 

Note that if the period to the year end was less than 6 months, you may not be required to file accounts for that first period, as the Commission can't deal with years under 6 months!

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