Recent Warnings from the Charity Commission

The Charity Commission has issued a new alert to the charity sector, warning about the types of fraud risks currently affecting charities. This reminder highlights the importance of good governance, oversight, and fraud prevention training.

Common Types of Charity Fraud

There are several types of charity fraud that organisations should be aware of. Below are some key charity fraud examples and how they can occur:

Insider Fraud

Fraud committed by someone within the charity (such as a trustee, employee, or volunteer). This type of fraud can involve the misuse of funds, falsified expenses, or unauthorised transactions.

Cyber Fraud

Fraud committed online (for example, hacking into charity banking systems, sending fake emails or invoices, or impersonating suppliers or donors).

Last year, over 50% of organisations suffered an insider threat attack, and 90% of businesses felt vulnerable to cyber-attacks, showing how widespread these risks can be.

Other Charity Fraud Risks to Be Aware Of

In addition to insider and cyber threats, charities should also be alert to other forms of fraud, including:

• Donation fraud – where fake donation pages or scams divert funds.
• Due diligence and partnership fraud – when external organisations or grant partners are not properly vetted.
• Money movement risks – ensuring funds are moved safely and only with appropriate authorisation.

Being aware of these charity fraud examples can help trustees and finance teams put stronger preventative measures in place.

What You Can do to Reduce The Risk/Impact of Fraud on Your Charity

• Conduct risk assessments
• Introduce segregation of duties – ensuring no one person controls all aspects of a financial transaction.
• Regularly log in to online banking – investigate query transactions.
• Never accept change of bank account details via email alone
• Have a clear whistleblowing policy
• Minimise cash
• Perform regular reconciliations and audits
• Explore insurance
• Train your team to spot fraud
• Strengthen cyber security

Stay Informed During Charity Fraud Awareness Week

Events like Charity Fraud Awareness Week are valuable opportunities for charities to review their internal controls, assess their exposure to fraud risks, and learn from real-world examples. Regularly engaging in fraud awareness training can make a significant difference in preventing financial loss and maintaining public trust.

How 360, Chartered Accountants Can Help

At 360 Accountants, our team is trained in fraud prevention and detection. If you’d like to discuss the impact of threat of charity fraud on your organisation, please get in touch:

Call us on 01482 427360
Email help@360accountants.co.uk

Or you can view our charity services.

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What Is the HMRC Annual Allowance?

Since 2006, HMRC has applied an Annual Allowance to pension contributions. The HMRC annual allowance is currently £60,000 per tax year.

If the combined total of an individual’s pension contributions (including employee, employer, and any private contributions) goes above this allowance, it triggers a pension charge. This charge is based on taxable income, which can significantly increase your overall tax bill.]

Understanding Your Annual Pension Statement

Your annual pension statement shows the total pension contributions made during the tax year. How these contributions are measured depends on the type of pension scheme:

• Defined contribution scheme (DC): The amount is based on what you and your employer actually paid into your pension pot.
• Defined benefit scheme (DB): Instead of showing actual payments, the value is calculated by comparing the opening and closing value of your pension over the tax year.

A quick reminder: a defined contribution scheme builds savings based on what’s paid in, while a defined benefit scheme promises a set retirement income, usually linked to your salary and length of service.

In DB schemes, a promotion or large pay rise can sharply increase the closing value of the pension. This can lead to a high Pension Input Amount (PIA). If the PIA exceeds the HMRC annual allowance, it creates a Taxable Pension Input (TIA), which will be subject to a pension charge.

Pension Charges and Higher Rate Tax

When your TIA pushes you above the allowance, HMRC applies a pension charge. For higher earners, this may mean paying tax at the 45% rate.

The effect can be particularly harsh if you’ve had a significant salary increase and at the same time exceeded your annual allowance through pension contributions.

Carry Forward Rules

There is some relief available through “carry forward”. If you didn’t use the full HMRC annual allowance in the previous three tax years, you may be able to use the unused amounts to reduce your TIA.

However, the rules can be complicated:

• Following changes in the 2015/16 tax year, there were two input periods, making carry forward calculations trickier.
• Unused annual allowances older than three years are lost entirely.

The Tapered Annual Allowance for High Earners

Further complications arise for those with adjusted income over £260,000 and threshold income exceeding £200,000. In these cases, the standard £60,000 HMRC annual allowance is reduced (tapered).

• For every £2 of income over £260,000, your allowance reduces by £1.
• Anyone earning over £360,000 will see their allowance reduced to as little as £10,000.

This means that paying into a pension above this reduced allowance could result in heavy pension charges at the 45% rate of tax.

Why You Should Seek Advice

As you can see, the rules surrounding HMRC pension allowances are complex. From understanding your annual pension statement to working out whether you are at risk of a pension charge, this is a highly specialised area.

If you have any questions or need expert guidance, please contact us, or you can explore our tax services.

The post Paying into Pension? How the HMRC Annual Allowance Could Catch You Out appeared first on 360 Chartered Accountants.

Gift Aid & Tax Relief

Donations made through the Gift Aid scheme allow the recipient charity to claim 25p worth of tax relief on every pound donated. At the same time, higher rate and additional rate taxpayers can claim relief on the difference between the basic rate and their highest rate of tax. This means that, in the context of tax and charity donations, Gift Aid provides advantages for both the donor and the charity.

Example:
If a taxpayer donates £500 to charity, the total value of the donation to the charity is £625. The taxpayer can then claim additional tax back of:

• £125 if they pay tax at the higher rate of 40% (£625 x 20%)
• £156.25 if they pay tax at the additional rate of 45% (625 x 20% plus £625 x 5%)

This shows how taxable charity donations can work in practice – although the donation itself isn’t taxed, it does reduce the overall bill when claimed properly.

Carry Back Contributions

A higher rate or additional rate taxpayer who wants to reduce their tax bill for 2024-2025 (the last tax year), could decide to make a gift to charity in the current tax year, 2025-26, and then elect to carry back the contribution to the previous year. A request to carry back the donation must be made before, or at the same time, as the 2024-2025 Self Assessment return is filed.

The deadline for filing a return is:

• 31st October 2025 if you file a paper tax return, or
• 31st January 2026 if you file online

This carry back strategy can be particularly useful for higher rate taxpayers, especially those paying tax at excessive marginal rates.

Why It Matters

For example, a taxpayer’s personal allowance is gradually reduced by £1 for every £2 of income over £100,000, irrespective of age. This creates an effective marginal rate of tax of around 60% for taxpayers with annual income between £100,000 and £123,000. In situations like this, understanding tax and charity donations can make a significant difference.

If you are a higher rate taxpayer and wondering are charity donations taxable or how they can affect your finances, this carry back process may be worth considering.

Next Steps

If you find yourself in this situation, you should explore your options carefully. Please call us to discuss whether this carry back process, and the rules around taxable charity donations, could benefit your tax affairs.

The post Are Charity Donations Taxable? Understanding Tax and Charity Donations appeared first on 360 Chartered Accountants.

There are several types of charities in the UK, and picking the right entity can seem complex. The differences aren’t always obvious, but the choice you make will impact liability, governance, and compliance requirements.

The table below outlines the main charity entities, where they are registered, and their key traits. This is not an exhaustive list, but it highlights the most common options when setting up a charity.

Choosing the Right Charity Entity

The best charity entity for your organisation depends on your goals, the level of liability protection needed, and how the charity plans to operate day to day. For example, a CIO is often the preferred option for the new charities because it provides limited liability without requiring dual registration with Companies House. However, for larger or more complex organisations, a company limited by guarantee with charity registration may be more suitable.

If you’re unsure which of the types of charities is right for your organisation, professional advice can help you weigh up governance, compliance and liability considerations before you commit.

FAQs About Charity Entities

What are the different types of charities in the UK?

The most common types of charities include Charitable Incorporated Organisations (CIOs), companies limited by guarantee (with or without charity status), unincorporated charities, trusts, and Community Interest Companies (CICs). Each has different structures, governance rules and liability protections.

What is a charity entity?

A charity entity refers to the legal structure chosen when setting up a charity. It determines how the charity is governed, whether trustees are personally liable, and how the organisation interacts with regulators such as the Charity Commission or Companies House.

Can you call a charity a company?

Yes, some charities are set up as companies limited by guarantee and are registered with both Companies House and the Charity Commission. These organisations have both a company number and a charity number.

What classifies you as a charity?

To be recognised as a charity, your organisation must have exclusively charitable purposes (such as advancing education, relieving poverty or promoting health) and must operate for public benefit.

Do charities need to register with HMRC?

Yes, charities need to register with HMRC if they wish to claim tax reliefs such as Gift Aid. Registration with the Charity Commission is separate from HMRC registration.

What sector does a charity come under?

Charities operate in the voluntary and community sector (sometimes referred to as the “third sector”). They are not-for-profit organisations working for public benefit.

The post Setting Up a Charity: Understanding Charity Entities & Types of Charities appeared first on 360 Chartered Accountants.

So if you’re wondering ‘what qualifications do you actually need to be an accountant?’, the answer is technically… none. There’s no legal requirement for an accountant to be qualified or regulated, which can make it difficult for business owners to know who they can truly rely on.

This is why it’s vital that when choosing an accountant to partner with, you carry out an accountant qualification check. Ideally, you ought to be using a Chartered or Certified Accountant – these professionals are highly trained, regulated by a professional body, and carry professional indemnity insurance. You can usually identify them by the following letters after their name: ACA, FCA, ACCA or FCCA.

Accountant Vs. Chartered Accountant – What’s the Difference?

You might be thinking, ‘what’s the real difference between an accountant and a chartered accountant?’. It’s a fair question, and one that catches a lot of people out.

A chartered accountant has undergone years of rigorous training, exams and practical experience. They’re also required to meet continuing professional development (CPD) standards and follow strict ethical guidelines set out by their governing body – usually the ICAEW, ACCA, or CIMA.

By contract, someone calling themselves an “accountant” with no chartered status may have no formal training, no insurance, little experience and no one regulating the quality of their advice. They might be cheaper upfront, but it could end up costing your business much more in the long run.

Chartered accountants are invariably more expensive than an unqualified accountant, but they could save you £000s in tax, avoid penalties, reduce the risk of a HMRC investigation and protect your reputation. Many of the serious cases of tax errors or negligent advice we try to rectify stem from individuals or firms that aren’t under the umbrella of a professional body. These unregulated firms often have no professional indemnity insurance – which means if something goes wrong, there may be no route for recourse.

How to Carry Out an Accountant Qualification Check

Before committing to any accountant, ask them clearly about their qualifications and memberships. You can also perform a basic accountant qualification check by looking them up on their professional body’s website. For example, the ICAEW, ACCA, and CIMA all have online directories where you can search for registered members.

If they’re not listed, they’re not qualified through that body. It’s as simple as that.

Questions to Ask a Prospective Accountant

Here are come useful questions you should ask before choosing your accountant:

• Are you qualified?
• Do you have spare capacity to take on my business?
• Are you up to date with the latest regulations and software?
• Have you set up or supported any businesses like mine recently?
• How robust is your IT security?

Accountant Vs. Chartered Accountant – At a Glance

If it sounds too good to be true, it usually is. When it comes to financial advice and tax compliance, cutting corners can be risky. Always do your homework, and if you’re not sure where to start, begin with a proper accountant qualification check.

Still unsure? Get in touch – we’re happy to help you understand the difference and find a qualified professional who’s right for your business (like us!).

The post Accountant vs Chartered Accountant: Why Qualifications Matter appeared first on 360 Chartered Accountants.

The Millhouse has evolved with the times, and a lot has changed over the last few years. The recent redevelopment has seen significant expansion to the restaurant, bar and function facilities, completing the transformation of The Millhouse into a unique, modern venue perfect for weddings and functions alike.

Today, The Millhouse Restaurant serves the best in modern British and European cuisine, alongside an extensive range of premium drinks and fine wines in stylish surroundings. It’s monthly tribute evenings and private dining room are forever popular, offering an extra special dining experience.

Despite the transformation, The Millhouse retains its heritage charm, and maintains the strong family values that the business was founded on.

To discover more about The Millhouse click here.

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It is expected that you:

• make sure all trustees, employees, volunteers and beneficiaries know about safeguarding and people protection
• have appropriate policies and procedures in place
• ensure people are suitable to act in their roles
• know to spot, refer or report concerns
• have a clear system of referring or reporting to relevant organisations as soon as you suspect or identify concerns
• set out risks and how you will manage them in a risk register which is regularly reviewed
• be quick to respond to concerns and carry out appropriate investigations
• do not let one trustee dominate your work – trustees should work together

There are many types of risks to be aware of:

• sexual harassment, abuse and exploitation
• negligent treatment
• physical or emotional abuse
• bullying or harassment
• health and safety
• a charity’s culture may allow poor behaviour
• people may abuse a position of trust they hold within a charity

As well as many others that charities should consider.

Charities should have policies and procedures in place that are reviewed annually and available to the public. It is important that all trustees, staff, volunteers and beneficiaries are aware of your policies.

You also need to make sure your charity has suitable health and safety arrangements in place for example, first aid and fire safety.

If your charity works with children and vulnerable adults, there should be additional safeguarding procedures in place to protect them from harm.

For more details please do not hesitate to contact Charity Manager Sophie on 01482 427360 or email help@360accountants.co.uk

The post Charity Blog: Safeguarding appeared first on 360 Chartered Accountants.

They’ve hosted a variety of worldwide renowned guest roasters including Bonanza (Berlin) and Nude (London). With their regular coffee offer roasted locally by the Blending Room in Hull.

Alongside coffee, they’ve also developed a cult following for Doughnut Fridays, where they teamed up with Hello Baker Girl to create two different flavours of lip-smackingly insane tastes each week, ranging from Gin and Elderflower to Caramel and Chocolate.

Recently, Two Gingers has taken on management of the coffee and catering offer at Humber Street Gallery next to Hull Marina. They’ve also added events to the mix at both venues with regular Acoustic Sundays at Humber Street Gallery and music events in Paragon Arcade.

Nearly everything to do with Two Gingers is proudly made in Hull. Their furniture, coffee, cakes and even plant pots.

Their following and positive reviews all over social media tell you that they’re going from strength to strength, so make sure you’re following them to keep up with the latest coffee (and doughnuts!)

Instagram: twogingerscoffee

Facebook: twogingerscoffee

Twitter: TwoGingers_

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Four years ago the firm bought and renovated number 19 Albion Street as its new headquarters.  The Georgian townhouse was fully restored, while the interior of the property now features modern office space.  But with 360’s ever increasing client base and work force the need to expand was paramount.  When the beautiful Georgian house next door went up for sale, the timing was perfect – and they’re currently nearing completion of extensive restoration work to bring it back to its former glory.

Andy Steele, MD and Founder of 360 said:

“It couldn’t have come at a better time for us.  360 is continuing to grow and more and more people are coming to us for our advice, accounting and financial expertise.  It’s a really exciting time to do business in Hull, especially given the ongoing multi-million pound plans to transform the city centre with new homes, shopping and leisure facilities coming on the back of our successful year as City of Culture – and it’s all happening a stone’s throw away from Albion Street.  To work in the hustle and bustle of the city centre was always the masterplan when I founded the firm 9 years ago with just 3 members of staff.  Now we have 30, with plans to recruit more in the near future.

”The new townhouse is as beautiful as our current headquarters and we are knocking through in order to join the two together.

It means we will have more meeting rooms, an area for client seminars and staff training, more office space for the team and more car parking outside.  It will be a better all-round experience for everyone.

“As a firm we always try to buy locally and / or with clients and this was the case with both the original refurbishment of 19 Albion Street and the ongoing works at 18 Albion Street.  As proud ambassadors of Hull we like to keep money in the local economy and we look forward to doing this for many years to come.”

To contact 360 Chartered Accountants, call 01482 427360 or email help@360accountants.co.uk or head to www.360accountants.co.uk

The post Listed Building Renovation for 360 Expansion appeared first on 360 Chartered Accountants.

Charities with income under £25,000 – 60% accurate

Charities with income over £25,000 – 89% accurate

Charities with income over £500,000 – 80% accurate

The most common error is the wrong figure being inputted from the accounts into the annual return.

The easiest way to avoid this happening is to ensure the person submitting the accounts is familiar with your financial information but also competent with charity annual returns.

Clearly presented accounts are easier to understand and help reduce the risk of errors occurring when inputting the figures into the annual return.

We can assist with this process and can answer any queries that may arise during the completion. For more info please call 01482 427360, email help@360accountants.co.uk or for more information on our charity services click here.

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