HMRC recognises charities' Common Reporting Standard concerns
HMRC guidance on the new Common Reporting Standard (CRS) has assured charities that it will provide a 'soft landing' approach for the third sector, at least during the early years of the new standard's implementation. HMRC will not seek to penalise charities that have 'made efforts' to carry out due diligence checks and meet reporting requirements. However, penalties will be considered for charities failing to engage with CRS requirements.
Charities subject to the CRS should have already started gathering information and are due to make their first report in May 2017. The CRS is intended to prevent tax evasion and, to this end, requires financial institutions, including grant-providing charities, to provide information about grant recipients.
Read more about HMRC's approach at:
https://www.civilsociety.co.uk/finance/news/content/22277/new_common_reporting_standards_
guidance_recognises_challenge_for_charities_and_assures_soft_landing_approach