Sometimes the volunteers are overwhelmed with the legal jargon thrown at them, which can be discouraging in setting up their charities. This presentation covers the different types of legal structures to be used by the trustees of charities. It also gives a list of reporting requirements to be complied with on an annual basis.

1. Charity
Legal Structures
For Charities
Seminar
Presenter: Mr Zee Shan

3. Content:
1. Intro to presenter
2. Trust
3. Limited company by guarantee
4. CIC (Community Interest Company)
5. Help and Advice
6. Q & A
Presenter: Mr Zee Shan

4. Introduction of the
Presenter

5. Zee Shan Bawany CTA ACCA MAAT
Tax Manager
Smartfield Accountants

6. Education
Qualification Centre
CTA (Chartered Tax Adviser) BPP Birmingham
ACCA (Association of Chartered Certified Accountants) De Montfort Uni
ATT (Association of Tax Technicians) FTC Birmingham
C & G 7407 Teacher Training Leicester College
AAT (Association of Accounting Technicians) Leicester College
BTEC National Diploma in Computing Leicester College

7. Smartfield Limited Tax Manager
Abbey Tax Plc Tax Consultant
Smith Hannah Ltd Head of Personal Tax
Leicester College Tax Lecturer
Employment

8. Hobbies

9. Dream
It is my dream to be able to make poached eggs
without using paper bags.

10. Trustees have many commitments in life but they are willing
to make a change in their communities by committing their
time, effort and money, so they should be respected.

11. Forms of legal structures
- Trust
- Limited Company

12. Trust
- A trust may be formed by a
“Trust Deed”;
- It is an unincorporated form
of legal structure.

13. Trust
Annual Compliance Requirements
1. Tax return and accounts to HMRC
(exemption may apply)
2.Trustees’ annual return and
accounts to Charity Commission (if
income < £25k then accounts not
needed)

14. Limited Company
- A company limited by guarantee
formed using a company formation
agent;
- It is an incorporated form
of legal structure.

15. Limited Company
Two types commonly used:
1. Normal Company Limited By
Guarantee
2. CIC (Community Interest Company)

16. Normal Ltd Co By Guarantee
Annual Compliance Requirements
1. Tax return and accounts to HMRC (exemption
may apply if registered charity);
2. Trustees’ annual return and accounts to
Charity Commission (if income < £25k then
accounts not needed);
3. Annual return and accounts to Companies
House.

17. CIC (Community Interest Company)
Annual Compliance Requirements
1. Tax return and accounts to HMRC. Exemption
may apply if HMRC direction given otherwise
subject to tax like a normal company;
2. Annual return, accounts and community
interest report to Companies House.

18. CIC Vs Ltd Co by guarantee charity (CLG)
CIC CLG
Tax Payable Exempt
Grants Accessible Accessible
Charity
Commission
No need to
register
Registration
required

19. Additional Compliance Requirements
1. Payroll: if staff are hired;
2. VAT: charities are exempted from registering
for VAT unless trading income exceeds the VAT
registration threshold.

20. Procrastination by trustees
Many a times the fear of paper work is perceived
to be greater than the actual burden.
E.g. It’s only a cat not a lion.

21. Charity Commission
0845 300 0218
HMRC Charities Helpline
0300 123 1073
Help & Advice

22. Content:
1. Intro to presenter
2. Trust
3. Limited companies
4. CIC
5. Help and Advice
6. Q & A
Presenter: Mr Zee Shan

23. Be willing to share

24. Feedback is important

25. The End