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HMRC will assume charity employees are 'fit and proper persons'

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Tue, 13/07/2010

New guidance says charities 'may assume that they meet the management condition' unless they are informed otherwise

HM Revenue & Customs will assume that all employees and trustees of charities are 'fit and proper persons' unless it is shown otherwise, according to new guidance.

The fit and proper persons test was introduced by the Finance Act in April, and allows HMRC to deny tax relief to a charity if it feels that a senior employee or trustee is a fraud risk.

The test governs whether charities are entitled to tax relief and is intended to reduce the risk of fraud after the extension of UK tax reliefs to donation to charities in all EU countries.

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