As a charity you don’t pay tax on most of your income and gains if you use it for charitable purposes – this is known as ‘charitable expenditure’.
This includes tax:
To get tax relief you must be recognised by HM Revenue and Customs (HMRC). Community amateur sports clubs (CASCs) get different tax reliefs.
When you do pay tax
Charities pay tax on:
You must pay tax on any money you don’t use for charitable purposes. This is known as ‘non-charitable expenditure’.
You must complete a tax return if your charity needs to pay tax or if HMRC asks you to.
You can claim back tax that’s been deducted, eg on: