Annual return changes

In our last edition we reported on proposed changes to the annual return. It is now confirmed that these changes will take effect for financial years ending on or after 1 January 2023.

CCEW have now published guidance on what information charities will need in order to be able to answer the new questions that are being included in the annual return for the first time, so that charities can prepare for the changes and ensure that they have the information required to complete the return.

The key changes to the annual return include:

• Identifying charities that are dependent on key supporters for a significant proportion of their income.
• Improving clarity on whether trustees have been paid by the charity or any connected organisations for the supply of goods and/or services.
• Requiring greater information on grants paid to individuals and other charities, highlighting whether any of those grants were to connected parties.
• Details of how overseas income was paid to the charity.
• Providing details on the premises from which the charity delivers services.
• Details of property belonging to unincorporated charities that is held by custodian trustees other than the Official Custodian.
• The location of any websites that are hosted outside the UK.
• Details of any wider organisations that the charity may be a member of.
• Details of any trading subsidiaries that have been dissolved.
• Information on the number of employees a charity has both in the UK and overseas, and the total payroll cost.

Gov.uk: Charity Annual Return 2023: question guide

There have also recently been changes made to the annual monitoring return (AMR) required by charities in Northern Ireland. From 1 October 2022 charities have had to provide contact details for all of their trustees, including both an email address and mobile telephone number, information that is being collected through annual reporting. There are also new questions in areas such as safeguarding, the processing of personal data and fundraising. To aid charities CCNI has published a new guidance document on how to complete the AMR.

The Charity Commission for Northern Ireland: Blog post: Changes to the annual return will facilitate better engagement with individual charity trustees