Charity Investment Income Services
Many charities rely on investment income to fund their work and achieve their goals. Whether from dividends, property rental, or managed funds, handling this income correctly is essential to ensure transparency, compliance, and effective financial management. At My Tax Consultants, we offer expert accounting services to help charities accurately record, report, and optimise their investment income, ensuring full adherence to UK regulations.
Understanding Investment Income for Charities
Charities can generate investment income from a variety of sources, including dividends from shares and investment portfolios, interest earned on savings and bank accounts, and rental income from properties that are owned by the charity but not directly used for charitable purposes. Properly managing and reporting this income is essential to maintain transparency, comply with regulatory requirements, and demonstrate responsible financial stewardship.
At My Tax Consultants, we help charities accurately classify and record these income streams, ensuring they are clearly reflected in financial statements. We also provide guidance on determining whether funds are unrestricted, restricted, or designated for specific projects, helping trustees make informed decisions and maintain donor trust.
Our Investment Income Accounting and Reporting Support
At My Tax Consultants, our goal is to make the process of managing your charity’s investment income as simple and efficient as possible. We offer comprehensive support that includes reviewing statements provided by fund managers, preparing accurate accounting entries that align with your charity’s reporting cycle, and reconciling investment income with bank accounts and portfolio summaries during the year-end process. These services ensure that trustees and management have a clear and accurate picture of the charity’s financial position, while also helping the organisation meet its reporting obligations to regulatory bodies such as the Charity Commission and Companies House, with minimal stress or confusion.
Tax Treatment of Investment Income
While charities enjoy certain tax exemptions on investment income, there are important details to consider. The tax treatment may vary based on the nature of the income and how it’s used. For example, income from some property or trading activities may not be fully exempt.
We work with charities to assess the tax treatment of each income stream and, where applicable, assist with claims for tax repayments on income that has had tax deducted at source. This review process not only ensures compliance but can also help recover funds that could be used to further your charitable work..
Support for Charity Trustees
Trustees are responsible for ensuring the charity’s investments and income are handled properly. We offer tailored support to trustees, helping them understand the impact of investment income on reserves and ensuring everything is clearly reported in the charity’s annual accounts and trustee reports.
Whether in person or remotely, we can explain figures in a straightforward, non-technical way, ensuring trustees are confident in their financial oversight.
Why SAS Accountants
My Tax Consultants offers professional and reliable services to charities throughout the UK. With our expertise in charity finance, we ensure that your investment income is managed in a compliant, efficient, and transparent manner.
Whether your charity already holds investments or is considering diversifying its income sources, we provide clear, structured financial advice to help you make informed decisions.
