Chapter NIM06620
| Published date | 11 April 2016 |
| Record Number | NIM06620 |
| Court | HM Revenue & Customs |
| Issuer | HM Revenue & Customs |
National Insurance Contributions Act 2014 - Section 3 and Schedule 1, Part 2, paragraphs 8 and 9
If, at the beginning of a tax year, two or more charities are connected with one another, then only one of them may claim the Employment Allowance. It is up to those charities to decide which charity will make the claim.
For the purpose of claiming the Employment Allowance, ‘charity’ has the same meaning as in section 18(1) of the Small Charitable Donations Act 2012, unless the provisions at item (5) of this page apply, whereby a company may be treated as if it were a charity.
When charities are considered to be connected for the purposes of claiming the Employment Allowance(1) Two charities are ‘connected’ with one another if they are connected in accordance with the meaning of ‘connected persons’ within section 993 of the Income Tax Act 2007 and their purposes and activities are the same (or are substantially similar).
(2) In the application of section 993 of the Income Tax Act 2007, for the purposes of applying the Employment Allowance:
(a) a charity which is a trust is to be treated as if it were a company (and accordingly a person)
(b) a charity which is a trust has control of another person if the trustees (in their capacity as trustees of the charity) have, or any of them has, control of the person
(c) a person (other than a charity regulator) has ‘control of a charity which is a trust if:
(i) the person is a trustee of the charity and some or all of the powers of the trustees of the charity could be exercised by the person acting alone or by the person acting together with any other persons who are trustees of the charity and who are connected with the person
(ii) the person alone or together with another person, has power to appoint or remove a trustee of the charity
(iii) the person, alone or with other persons, has any power of approval or direction in relation to the carrying out by the trustees of any of their functions
(3) A charity which is a trust is also connected with another charity which is a trust if at least half of the trustees of one of the charities are:
(a) trustees of the other charity
(b) persons who are connected with persons who are trustees of the other charity
(c) or a combination of both (a) and (b)
and the charities’ purposes and activities are the same, or are substantially similar.
(4) In determining if a person is connected with another person for the purposes of applying the Employment Allowance, Section 993 of the...
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