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Charity Accountants | The latest news, views and comments from charity accountants Harry Nicolaou


Transition from charities FRSSE SORP to charities FRS 102 SORP

For charity accounts beginning on or after 1 January 2016, there will be no option for charities to use the FRSSE SORP.  All charities must use the FRS 102 SORP.  The main differences under FRS 102 are: Certain accounting policies will need to be changed to comply with FRS 102.  Previous years figures will need […]


Why text messages could be the future for charities

This is an article taken from theguardian and written by Mandeep Hothi and Andrew Wilson which I hope you will find useful: “In January more than 300 residents on the Aylesbury estate in south London, Europe’s largest social housing project, found out about job opportunities through a text message. The message was sent by Patrischia […]


Automatic Enrolment into a Workplace Pension

Introduction Starting from October 2012, up to 11 million workers will be automatically enrolled into a workplace pension. Larger employerswill go first, with small and medium sized employers following over the next six years.  A workplace pension is a way of saving for retirement arranged by an individual’s employer.  It is sometimes called a ‘company […]


Budget 2013 Extracts relevant for small businesses

Business Taxes National Insurance – employers’ employment allowance: from April 2014, an annual allowance of £2,000 will be introduced,  which all businesses and charities will be able to offset against their employer Class 1  NI liability. Capital Allowances – low emission vehicles: legislation will be included in Finance Bill 2015 to extend the 100% capital […]


Tax Tables 2013-14

Income tax personal and age-related allowances Per year 2012-13 2013-14 Personal allowance (age under 65)    £8,105   £9,440 Personal allowance (age 65-75)  £10,500   £10,500 Personal allowance (age 75 and over)  £10,660 £10,660 Married couple’s allowance (age 77 and over)  £7,705   £7,915 Married couple’s allowance – minimum amount  £2,960   £3,040 Income limit […]


Gift Aid Scam

£46m of tax has been avoided by donors using the gift aid scheme. The charity “Cup Trust” used an offshore bank loan to buy £1m of gilts.  These were then sold to an investor for a nominal amount.  The investor paid a fee to join the scheme.  The investor would then sell the gilts and […]


Charitable Incorporated Organisations (CIOs)

The following is an extract from the Independent Examiner newsletter of the Association of Charity Independent Examiners: A Charitable Incorporated Organisation is a new legal entity designed specifically for charities.  The aim is to provide the benefits of incorporation – limited liability making it easier to recruit and retain trustees, and legal personality making it […]


Fraud in charities

The National Fraud Authority’s  annual fraud indicator  shows that charities estimate they lose 1.7% of their annual income to fraud, which equates to £1.1bn of the sector’s income for 2010/11. Types of financial crime that charities are susceptible to include the falsification of grant applications, theft from cash collections, fake requests for donations, the misuse […]


Charity pension scheme accounting

There is likely to be a change in the way that charities disclose their defined benefit pension liability in their accounts when they are part of a multi-employer scheme.  The change will require charities to disclose their agreement to fund the pension deficit in the multi-employer scheme as a liability on the their balance sheets, […]


Real Time Information (RTI) is coming

There are big changes coming in the way that payroll information will  be sent to HMRC. The new system is called Real Time Information (RTI) and is compulsory for all employers, including charity employers.  The starting date will be between April 2013 and October 2013.  The exact date will be notified to each employer by […]