Your personal digest on the new Annual Return

After an extensive consultation in autumn last year the Commission has published their results in the form of Charities (Annual Return) Regulations 2017.

The Commission has listened to the consultaton and as a result has made some positive changes to the initial proposals. Some of the less popular proposals have been forgone and the new Annual Return (“AR18”) will not ask charities about the claim of rates relief for premises, or the amount of Gift Aid claimed.

AR18 applies to charities with financial years ending on or after 1 January 2018 and must be completed by all charities with annual incomes of £10,000 or more as those charities classified as ‘excepted charities’ which have annual income below £100,000 (e.g. church charities).

The digital service for AR18 is currently being developed and should be made available over the next few months.


Key changes:

• Disclosure of income from overseas governments or quasi-governmental bodies, charities and NGOs will be mandatory.

• Income from other overseas institutions and donors will be voluntary for the AR18 and then mandatory in subsequent years.

• Reporting of total staff remuneration, including salary, bonuses, pension contributions, private health care and other benefits in kind.

• The Commission will make public how many individuals receive total packages over £60,000 in bands £10,000 up to £150,000, then in bands of £50,000.

• The Commission will also require charities to provide information about their highest paid employee, but that information will be held for regulatory purposes and will not be made public.