Do Churches Have to Declare Donations?

Churches don’t pay tax on donations, so there’s nothing to declare to HMRC in the way a business declares its income. But every gift must still be recorded.

Donations go into the church’s accounts, and charity law requires accounting records to be kept for at least 6 years. Registered charities with an income over £10,000 also file an annual return with the Charity Commission.

If you claim Gift Aid, HMRC can ask to see the records linking each claimed gift to a declaration. And if a gift comes with a restriction, such as for the roof fund, it must be kept and reported separately from general funds.