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Corporation tax reporting changes 'could cost charities millions'
The new reporting system for corporation tax to be introduced by HM Revenue & Customs (HMRC) could put an unfair burden on charities, according to the Charity Finance Directors' Group (CFDG).
It will require all organisations, charities included, to submit annual accounts using XBRL software, which Oxfam has calculated could cost between £5,000 and £17,000, Third Sector Online reports.
This could mean that the UK's 30,000 incorporated charities face a combined bill of around £150 million, while higher education establishments and housing associations could also suffer.
"Our worry is that the software will be expensive and won't be appropriate for charities to use," Roger Chester, deputy chair of the CFDG told the news provider.
"The system is based on commercial accounts, which use a profit-and-loss accounts system."
In November 2009, the CFDG met with HMRC to discuss a number of key taxation issues faced by charities, including VAT policies that discourage collaboration in the sector.
Posted by Susie Cho.
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