View Test Prep - communication skills.pdf from EE 1 at St.Michael Polytechnic College. This sample chapter is for review purposes only. Chapter 1: THE NATURE OF SCIENCE. Over the course of human history, people have developed many interconnected and validated ideas about the physical, biological. Chapter 2 Study Guide. Six Steps of Critical Thinking Critical thinking involves the use of a group of interconnected skills to analyze, creatively integrate. The Ruby on Rails Tutorial is designed to give you a thorough introduction to web application development, including a basic grounding in Ruby, Rails, HTML & CSS. This sample chapter is for review purposes only. Chapter 18 Date . Copyright Goodheart-Willcox Co., Inc. Chapter 7: Audits by HMRC charities. Chapter 7. 1: Introduction. HM Revenue and Customs (HMRC) selects a number of charities and community amateur sports clubs (CASCs) for audit to ensure that the Gift Aid Scheme is being used properly and that any repayment claims made are accurate. If your repayment claim is selected for a review, it doesn’t necessarily mean that HMRC believes the claim is wrong or that there’s suspicion about anything to do with the claim or your charity or CASC. HMRC wants to help you to get things right and will help your charity or CASC to make further repayment claims if it is found that less tax has been claimed than was due. HMRC auditors aren’t evaluated on the level of adjustments made or rewarded for the amount of tax they recover. Charity trustees are ultimately responsible for ensuring that all claims are correct so they have an obligation to ensure that appropriate systems are in place to achieve that result. It’s also important that they’re aware of any review being undertaken by HMRC, and if it isn’t necessary for them to deal with the auditor directly they, should nominate a suitable charity official to do so in writing. Chapter 3 of the Detailed Guidance Notes for Charities explains the requirements of the Gift Aid Scheme and the records you should keep and how long you need to keep them. Chapter 7. 2: How a charity is chosen for audit. Claims for audit are generally selected for review on a . HMRC also select a number of claims for review on a random basis. If your charity’s repayment claim is selected for a review, it doesn’t necessarily mean that HMRC believes the claim is wrong or that they’re suspicious about anything to do with the claim or your charity. Pearson Prentice Hall and our other respected imprints provide educational materials, technologies, assessments and related services across the secondary curriculum. This sample chapter is for review purposes only. This chapter is designed to identify and explain the con-. ![]() Chapter 7. 3: What happens when a charity is selected for audit. HMRC will issue you with a questionnaire to help the auditor to get a better understanding of the relevant issues and the areas that’ll need to be covered during the review. The main part of any audit is a detailed review of the documentation associated with a claim, including Gift Aid declarations and banking records. You’ll be advised in advance about: the records the auditor will need to see during the reviewwhether the auditor intends to review all of the records supporting a claim or a sample of those records. The auditor may request sight of the Gift Aid declarations and audit trails for a number of donors included in your repayment claim along with the issue of the questionnaire. The auditor will then decide whether the review can be undertaken by correspondence, or whether a visit is required. If you’re asked to send your records to HMRC but would prefer our auditor to visit please let them know. If a visit is required, a member of the audit team will contact you, giving as much notice as they reasonably can, to arrange a convenient date and venue for the audit. If the proposed review date isn’t convenient or if you have any problems providing the records requested, you should discuss this with the auditor as soon as possible. The auditor will work with you to help resolve any difficulties and to schedule appropriate dates for the review. Where a charity can show that it has embarked on a programme to identify donors for whom Gift Aid declarations are missing or not appropriate (and to obtain declarations from them) this work may be continued to an agreed deadline and the auditor will take this into account when considering whether a full review is necessary. Normally, the auditor will visit the place where the charity’s records are kept. When confirming arrangements for a review visit, please ensure the auditor knows where your records are kept. If any of your records are stored elsewhere or held by a third party, please tell the auditor and agree on arrangements for those records to be made available. If your records are kept on a computer, it may be necessary to allow the auditor to access hard copies of the records, which may determine where the review will take place. Chapter 7. 4: What the audit review involves. HMRC auditors will check records supporting a tax repayment claim including donation records, Gift Aid declarations and banking/cash records. The auditors will generally base every review as follows: If the charity is a trust for tax purposes, the auditors will review claims submitted that cover the last full tax year, that is, claims submitted in respect of donations received between 6 April and 5 April. If the charity is a company for tax purposes, the auditors will review claims submitted that cover the year up to the last Accounts Period Ended (APE), for example, a charity has an APE of 3. September - claims will therefore be reviewed in respect of donations received between 1 October and 3. September. Where there’s a specific reason for reviewing earlier claims the review may extend beyond the periods referred to above. The audit will involve reviewing the charity’s accounting records, systems and procedures. During the course of this work HMRC may also identify other potential tax risks, such as non- charitable expenditure, employer compliance and VAT issues. Where potential problems are identified, the auditor may: advise the charity on accounting improvements that should be madetake action to recover tax that HMRC considers to have been incorrectly repaidarrange a further payment by way of a further claim where the charity has claimed less than was duerefuse to authorise payment of a proposed claim that HMRC consider to be incorrectrefer matters for further consideration to other HMRC departmentsprovide any advice necessary to help reduce the burden of record keeping for the charity. Chapter 7. 5: What the auditor will be looking for. Essentially, the auditor will need to be satisfied that the charity’s records properly support the tax repayment claims. The auditor will make checks such as ensuring that tax repayment forms (R6. The auditor will seek to confirm the validity of Gift Aid claims by ensuring that: appropriate Gift Aid declarations are held for all donations on which a Gift Aid tax repayment is claimeddonations meet the requirements of the relevant legislation - for example that gifts aren’t subject to a condition as to repaymentany benefits provided for Gift Aid donors do not exceed statutory limits. The auditor will need to see that an acceptable audit trail exists to link tax repayment claims to individuals, their donations and to their Gift Aid declarations. The auditor will also need to see that an acceptable audit trail exists to show that the repayment under review has been received by the charity and been correctly banked into the appropriate account. Chapter 7. 6: What constitutes an acceptable audit trail. Usually an acceptable audit trail is easily established for donations received by cheque, standing orders, direct debits, debit card or credit card. Cheque payments should be detailed on the paying in slips when banked by the charity, or can be included on a banking breakdown sheet if there are numerous cheques. Standing orders and direct debit payments can be fully reviewed directly from the charity’s bank statements. Card payments can be traced through the verification and confirmation provided to the charity by the card issuer. However, there can be difficulties in: linking a particular cash donation to an individual who has given a valid Gift Aid declarationtracking that donation from the time it is made to the time it is banked by the charity. A charity must therefore ensure it maintains suitable records when claiming Gift Aid on cash donations. This may include an envelope giving scheme (see paragraph 6. It is not acceptable for a pool of cash collected on an unattributable basis to be arbitrarily allocated to individuals for whom a Gift Aid declaration is held and claims made on that basis. As an example, a tried and tested record system that meets HMRC requirements involves: an individual sealing a cash donation in an envelope with a pre- printed Gift Aid declaration on it and putting his/her name and the amount given on the outsidethe envelopes being opened in the presence of at least 2 charity officials with the amount contained in each being checked against the statement on the outside and attributed to the named individuala record being kept of the name and amount given by each donor for whom a valid Gift Aid declaration has been receivedthe envelopes that incorporate the Gift Aid declarations for one off donations being retained for 4 years from the date that the donation is included in a charity repayment claima record being kept of the total cash collected and how it’s banked. This isn’t the only system that will meet HMRC requirements but it illustrates what they’re looking for. An envelope might, instead of a declaration, incorporate a reference that links the named donor to a declaration given earlier, covering all donations to the charity. In such circumstances, the charity is advised to keep a minimum of one month’s envelopes per tax year, covering a period of 4 years. For example, a church may decide to keep every general giving envelope received throughout the month of August. After a period of 4 years the church will have in place a total 4 months envelopes, all received during August for the preceding 4 years. HMRC is happy to review and comment on any system you have in place or are thinking of introducing in your charity. Chapter 7. 7: Other . This will involve taking the names and addresses of some of the donors included in claims so that their tax records can be checked. Any problems identified by such a review will be a matter between the individual donor and HMRC. For reasons of taxpayer confidentiality, HMRC won’t be able to identify the particular donors concerned to the charity. It will be up to the donors whether or not they wish to discuss such matters with the charity.
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