Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Viewers also liked
Viewers also liked (20)
Similar to 3B Finance - Current Hot Topics
Similar to 3B Finance - Current Hot Topics (20)
More from MinnaAF
Recently uploaded
Recently uploaded (20)
3B Finance - Current Hot Topics
- 1. FINANCE : Current Hot ©LCVS 1 Topics 12th November 2014 Presented by Graham Wright
- 2. ©LCVS 2
- 3. ©LCVS 3 Today’s Top Ten • SORP 2015 • Legal Structures • Auto Enrolment • Holiday Pay • Gift Aid / Charity Shops • Investments • Trading Subsidiaries • VAT & Other Taxes • Banking Arrangements • Business Rates
- 4. ©LCVS 4 SORP 2015 • Introduction • Implementation • Which SORP ? • Trustee Annual Report
- 5. ©LCVS 5 SORP 2015 KEY ISSUES • Legacy Income • Government Grants Received • Accrued Leave • Grant Making • Pension Schemes • Income Recognition
- 6. LEGAL STRUCTURES Identifying the most appropriate legal structure for your organisation and its individual activities • Charity vs. Community Interest Company • Change to a Charitable Incorporated Organisation? • Unincorporated vs. Incorporated ©LCVS 6
- 7. ©LCVS 7 AUTO ENROLMENT • The Basic Rules / Concept • Know your Staging Date • Financial implications for your organisation – include in the budget • Compliance costs – time, administration and penalties!
- 8. HOLIDAY PAY 30.8 million people work in the UK, 5 million do voluntary or compulsory overtime • EAT legislation change - applies to people regularly working overtime / in receipt of bonuses / additional payments • Additional payroll costs (est 3% - 5%) • Spiralling payroll costs / a Time Bomb? • EU Law – 4 weeks’ holiday entitlement • Limit on retrospective claims ©LCVS 8
- 9. GIFT AID / CHARITY SHOPS • Donations eligible for gift aid • Special Rules : sponsored challenges, membership fees, church collections, charity shops, events, auctions, volunteer expenses ‘given back’ • Gift Aid Small Donation Scheme (GASDS) ©LCVS 9
- 10. ©LCVS 10 INVESTMENTS • Investment Policy & Guidelines • Consider charitable objects & Reserves Policy • Social Investment / Programme Related Investment • Return / Risk / Volatility (Total Return?)
- 11. ©LCVS 11 TRADING SUBSIDIARIES Question : Do you need one? • Tax and administration • Keep everything at “arms-length” • Control and independence • Accounting • Permitted activities & commerciality
- 12. VAT & OTHER TAXES (1) Generally, • Need to be recognised by HMRC (meet ©LCVS 12 criteria, complete Form ChA1) • Most types of income exempt as long as money is used for charitable purposes • Can claim back tax that has been deducted e.g. on bank interest, donations, etc.. • Different reliefs available to Community Amateur Sports Clubs (CASC’s)
- 13. ©LCVS 13 VAT & OTHER TAXES (2) • Reliefs available to Charities (generally NOT available to CASCs) • Registration Limit : compulsory if non-exempt supplies (taxable turnover) > £81K • Grants vs. Contracts – BEWARE of the VAT implications
- 14. BANKING ARRANGEMENTS • Electronic and On-Line Banking: ©LCVS 14 Controls / Risks Dual authority / Mandate requirements • Borrowings / personal guarantees • Current Account charging
- 15. ©LCVS 15 BUSINESS RATES • Reliefs available to charities - Mandatory (80%) - Discretionary (20%) • Charity Activity vs. Administration • Trading Activity / Charity Shops • Community Interest Companies,etc..