Updates from the Charity Tax Group

• HMRC’s updated Charities Guidance states that if an authorised official (who is not a trustee) completes and signs a charity’s tax return, a trustee must now countersign it.
• The scope of this rule is unclear—whether it applies solely to charity Corporation Tax and Trust Tax returns or extends to Gift Aid claims.
• Larger charities may face administrative challenges, as tax return preparation is typically delegated to finance teams, not trustees.
• HMRC has not addressed how a trustee countersignature would work for electronically filed returns.
• The Charity Tax Group (CTG) is seeking further clarification from HMRC on these queries.

The trustee sign-off requirement could create additional administrative burdens, particularly for larger charities. Until HMRC provides further clarification, charities should review their tax return submission processes.

2. VAT Invoicing

• HMRC has made minor updates to its guidance on 'Less Detailed VAT Invoices'
• A less detailed VAT invoice can be issued if:
  • The total value (including VAT) is £250 or less.
  • For Northern Ireland businesses, if the customer is not from another EU member state.
  • The invoice does not include exempt supplies.
• Required details on such invoices include:
  • The retailer’s name, address, and VAT registration number.
  • The time of supply.
  • A description of goods or services supplied.
  • The total amount payable, including VAT.
  • The VAT rate and the gross amount payable at each rate.

For charities operating retail shops, the VAT invoicing update is a useful reminder of the simplified invoicing rules for small-value transactions. Ensuring compliance with these requirements can help streamline VAT record-keeping.