For a briefing on Charitable Incorporated Organisations (CIOs) and how these may be of use to existing charities or social enterprises click here. The briefing answers some of the questions we have been asked about CIOs by organisations.
HMRC is warning people to be aware of fraudulent emails and has issued guidance so you can recognise if the email is genuine or not. HMRC says to look out for the following:
Disclosing personal information – HMRC never asks you to disclose personal information, passwords or bank details in emails.
You should see the padlock, which indicates you are in a secure session, when you log in to HMRC Online Services, and the beginning of the web address will change from http to https to show that a secure connection has been made.
Your name will often be missing on a fraudulent email – it might say something like Dear customer instead.
The sender should be HM Revenue and Customs (HMRC), not the Inland Revenue or Customs and Excise as these departmental names no longer exist. Recent emails have claimed to be from fake departments or from HMRC Board members.
Other signs to look out for are wording such as fiscal activity and GBP which HMRC do not use.
If you have any doubts about the links within the email go via www.hmrc.gov.uk and always check the site in the address bar to make sure it is a genuine one.
If you have received an email you consider to be fraudulent please forward it to HMRC at phishing@hmrc.gsi.gov.uk. HMRC cannot reply to every email, but it will investigate.
Take a look at our information to help your charitable organisation survive the recession. We can provide support to help you get through the recession and also have a free Resources Sheet that you can request with information on loan finance, undertaking supplier reviews and using full cost recovery. Visit us to request this resource sheet.
Charities should take care as they may need to be VAT registered. Often grants (which are not subject to VAT) are actually more like supplies of services (which are subject to VAT). Key things to consider are whether you have signed a Service Level Agreement, which contains restrictions on how the money is used and obligations that the charity must meet in order to continue to receive the money. If you breach the agreement, can you be sued?
If, on the other hand, the money is for a pre-existing activity or the charity has defined the activities it will deliver and how the money will be spent, then it is likely to be considered as a grant.
Not sure whether your income is actually making you liable to be VAT registered? Look at the Service Level Agreements or contracts and see if there is a clause that specifically mentions VAT.
About to sign a contract – remember to get it checked over first so that any clauses that won’t be beneficial for your charity can be reworded. Need help then please ask!
