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MRC Accounting Services
Providing accounting services and solutions
Frequently asked questions
What specific experience should I look for in an accountant for my charity in Criccieth?
You should seek a professional who has direct experience preparing charity accounts under the Charities Act framework. Look for familiarity with the Statement of Recommended Practice (SORP) and practical knowledge of restricted fund accounting. A specialist will also understand the reporting thresholds that apply to different sizes of charities, ensuring your organisation meets all statutory requirements without unnecessary administrative burden.
How can an ACCA or ICAEW qualified accountant assist with HMRC reporting for a charity?
An ACCA or ICAEW qualified accountant can manage your charity's HMRC reporting obligations efficiently. They will handle the annual tax return, ensure correct treatment of Gift Aid, and manage PAYE for staff. They also provide guidance on VAT registration thresholds and partial exemption calculations. Their expertise ensures that your charity claims all available reliefs and avoids costly penalties for late or incorrect submissions.
What is the difference between receipts and payments accounts and accruals accounts?
Receipts and payments accounts are a simpler cash-based method used by smaller charities, recording money received and paid out during the year. Accruals accounts follow the Companies Act and SORP, recognising income and expenditure when earned or incurred, not when cash moves. The choice depends on your charity's income level and governing document. Your accountant will advise on which method is appropriate for your organisation.
Can an accountant help with Corporation Tax issues for a charity's trading subsidiary?
Yes, a qualified accountant can provide essential support if your charity operates a trading subsidiary. They will help structure the subsidiary to maximise tax efficiency, ensuring profits are transferred to the parent charity under Gift Aid. They also prepare the Corporation Tax return and advise on available exemptions. This planning helps you avoid unnecessary tax liabilities whilst remaining fully compliant with HMRC regulations.
How often should my charity review its accounting arrangements with a professional?
It is advisable to review your accounting arrangements at least annually, ideally before the financial year end. Regular communication with your accountant allows for proactive tax planning and ensures that any changes in charity law or accounting standards are addressed promptly. Many charities benefit from quarterly check-ins to review cash flow and budget forecasts. Your accountant can recommend a schedule that matches your charity's complexity and activity level.
What records must a charity maintain to satisfy HMRC and the Charity Commission?
Charities must maintain accurate financial records that show all income and expenditure, including a record of assets and liabilities. You must keep bank statements, receipts, invoices, and details of any restricted funds. Payroll records for staff and Gift Aid declarations for donors are also essential. Proper records enable your accountant to prepare accurate returns and provide assurance to trustees and regulators.
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