IoM Charity Reporting Requirements Change

by Jason Gorringe, Tax-News.com, London

26 August 2011

The government of Isle of Man has reminded Manx-registered charities of new income thresholds, in place since August 1, 2011, that may require them to have their accounts independently examined or audited.

At its July sitting the island's legislative assembly, the Tynwald approved an Order which introduces new thresholds which apply for any accounts covering a period beginning on or after August 1, 2011; consequently any donations made by the public to a Manx charity from this time may be subject to the new regulations.

Not all charities will be able to take full advantage of the new thresholds as some have their own rules or governing documents that say that their accounts must be audited, and these must be followed even if the charity’s income is below the statutory threshold.

According to the Order, the new thresholds are as follows:

• Where gross income is GBP25,000 or below there is no need for examination or audit, but the charity must prepare annual accounts and file them for public inspection at the General Registry within six months of the year end;
• Where gross income exceeds GBP25,000 but is below GBP250,000 accounts must either be independently examined or audited and then filed as above; and,
• Where gross income exceeds GBP250,000 accounts must be audited and then filed as above.

The old thresholds were GBP5,000 and GBP100,000, respectively.

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