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<p>Where the corporation tax liability of a club or an unincorporated organisation
does not exceed £100, and where that club or organisation is run exclusively for the
benefit of its members, HM Revenue and Customs (HMRC) will not generally require that
club or organisation to complete corporation tax returns. HMRC review such treatment
every 5 years. This treatment does not apply to companies which are wholly owned by,
or subsidiaries of, charities.</p><p> </p><p> </p><p> </p><p>HMRC recognises that
asking a charity to formally claim tax relief every year would be administratively
burdensome and therefore they do not require every charity to file a tax return every
year.</p><p> </p><p> </p><p> </p><p>However, they do require every charity to file
a tax return once every few years so that they can check that the charity is claiming
any tax exemptions and reliefs in accordance with the law. In addition, charities
have an obligation to complete a tax return where they have reason to believe that
they should be paying tax on some of their income or gains.</p><p> </p><p> </p><p>
</p><p>If HMRC send a notice to a charity to file a tax return, the charity must complete
it and submit it within the time limits given on the forms or they may face a penalty.</p><p>
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