What is a Receipts and Payments Accounts?
It is a simple method of reporting for charities. It is cash basis reporting and captures the money spent (cash and bank) and money received (cash and bank) by a charity, as well as the account balances.
Who can submit Receipts and Payments Accounts?
Charity structure wise, non-incorporated charities are allowed to submit receipt and payment accounts, so charities registered with Companies House can’t file this type of accounts
With regards turnover threshold, charities with turnover below £250k can submit receipt and payment accounts, while those with turnover above this threshold are required to submit accruals accounts.
Components of a Receipt and Payments Accounts
Prepared by the Trustees
- A Trustees Annual Report – this provides details of the charities public benefit activities during the year. Here is template for producing a trustees annual report.
- A Receipts and Payment Accounts – this provides an analysis of income and expenditure during the year. Here is a template for preparing a receipts and payments account
- A Statement of Assets and Liabilities – which provides details of the charity’s assets and liabilities at the end of the year
Prepared by an Auditor or Independent Examiner
- An audit or independent examination report. This is only required of charities with gross income above £25k
Submission Deadline
All charities are required to submit accounts within 10 months of the end of their financial year, so the same deadline applies charities submitting receipts and payments accounts e.g. if the charity’s financial year runs till 31 March, accounts will need to be submitted to Charity Commission by 31 January.
How to submit
The charity can submit their receitp and payment accounts online, here.
If you have any questions about completing your receipt and payment accounts, contact us or book a no-obligation chat via our website www.bancservices.co.uk.