Trust/Charity: Obligation to submit Tax Return

[DonaldF]

I’m treasurer of a small church which is a trust, a registered charity and registered with HMRC for Gift Aid repayment. It's Income is under £15000. This is attributable to donations. No trading activities are undertaken.

Recently, HMRC sent the church a letter asking it to make a Tax Return for 2016-17. This is the first one we've had in my time as treasurer (six years).

I replied and queried whether the church had a legal obligation to make a return. I wrote:

‘Other than donations, its (the church) only income is a small amount of bank interest, which is paid gross. In the year 2016-17, this amounted to under £100.

‘Due to the above, I understand that the church does not have a legal obligation to make a tax return for 2016-17 and that if present circumstances continue, under present legislation, it has no obligation to make tax returns in future years.

‘Could you please confirm, in writing, that this is indeed the case.’

HMRC replied:

‘All charities are required to file tax returns when requested to do so by HMRC.’

Can you confirm that the above is true? Relevant legislation and test cases would be useful to know.

If it isn’t true, how would I go about presenting a case to HMRC against submitting a Tax Return?

[bd6759]

The legislation is at s8A TMA 1970. There are no test cases because the legislation gives HMRC the right to require a return.