ABSTRACT
Charities, except the very smallest, often employ staff and therefore need to comply with the rules for deducting tax and national insurance on their employees’ pay. Charities enjoy no special privileges or exemptions as far as this aspect of taxation is concerned, and charities can therefore be charged interest or penalties where they do not comply with their tax obligations as employers. The rules of pay as you earn (PAYE), returns of expenses and benefits in kind provided for employees (P11Ds) are exactly the same as those for non-charitable organizations.
