Charity and Not For Profit Accountants

Our experienced team of charity accountants have a wealth of knowledge and over 30 years of experience in the sector.

We currently act for over 50 charity and not-for-profit clients throughout Scotland and England, including Scottish Charitable Incorporated Organisations, Unincorporated Charities, Charitable Companies and Trusts, Community Benefit Societies and Clubs.

Led by company Director Caroline Tice and Charities & Regulated Entities Manager Karen Stephens, our team provides a range of services, including charity accounts preparation, independent examination and audits, bookkeeping assistance, VAT and Tax assistance, fund accounting as required by the SORP, payroll services, Gift Aid submissions and more.

Our charity and not-for-profit clients include historical houses, museums, educational groups, churches, monasteries, food banks, community groups and projects, and conservation and preservation of land and rivers.

Accounting for Charities and Non Profits

While our team of non-profit accountants offer expert guidance and help on a wide range of topics, some of the key charity accounting services include:

Compliance

Our team can work as an extension to your organisation to deliver compliance services such as accounts preparation, bookkeeping assistance and filing of annual returns.

Compliance Services

Audit & Independent Examinations

With extensive experience supporting charities and not-for-profit clients, our team can provide statutory audits of charity accounts and independent examinations.

Audit Services

Payroll Services

Our experienced payroll department can provide a fully managed service to ensure your payroll is processed on time and is compliant with HMRC, allowing you to rest assured.

Payroll Services

Charity Accounting FAQs

What accounting is required for charities in the UK?

All UK charities must keep proper accounting records, which must be sufficiently detailed to show and explain the transactions of the charity.

These records may be computerised or manual and should consist of the following:

A cash book recording the day-to-day income & expenditure
Bank statements which are reconciled to the cash book records
Invoices, receipts and grant documentation for all income & expenditure

Do charities need to file accounts with HMRC?

Charities generally do not need to file accounts with HMRC unless the following circumstances occur:

They have been served a notice from HMRC requiring them to file a return
They have taxable income or gains not covered by reliefs or exemptions

Do charities pay tax to HMRC?

The assumption that charities don’t pay VAT or Corporation Tax is not true.

VAT

Charities are not exempt from paying VAT and must register for VAT if they have non-primary purpose trading income which exceeds the VAT threshold.

This income does not advance the charity’s purpose or provide public benefit but is purely derived to raise charity funds.

Corporation Tax

Some types of income within a charity are subject to Corporation Tax, mainly the non-primary purpose trading income (less appropriate support costs) mentioned above.

However, charities do receive a small trading tax exemption, and tax may not be applicable to the trading income should they meet the exemption criteria.

Find a Charities and Not For Profit Accountant

Charity Accounting Experts

Caroline Tice & Karen Stephens

We have a dedicated team of charity and not-for-profit specialists that are led by company Director Caroline Tice and Charities & Regulated Entities Manager Karen Stephens.

Caroline has worked for DH&Co since 1993. She specialises in general accountancy practice and HR, as well as overseeing auditing and due diligence for the firm.

Karen joined the firm in 2016 and qualified as a Chartered Accountant in 2019. Karen has in-depth knowledge of charity accounting and now manages over 50 charity and not-for-profit entities.

Contact Caroline

Contact Karen

“In 2023, we transferred our payroll data processing to Douglas Home & Co on the basis of a recommendation. There was a very good sense of both flexibility and ownership from the start. The promptness of the response to queries bears that out, and we have saved ourselves significant staff hours in our office whilst vastly improving the professional standard of the work. I would happily recommend their services to others.”

– Simon Filsell

Diocese of Edinburgh

Beware of Thresholds

If a charity makes up its accounts on the receipts and payments basis, a problem can arise with the sale of a building or receipt of a large legacy, as the charity may need to switch to the accruals basis (receipts of £250,000 or more) or be subject to an audit (income of £500,000 or more for Scottish charities and £1,000,000 for English charities), involving restatement of the prior year accounts and/or the appointment of an auditor instead of an independent examiner.

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