Before you start operating
Apart from the bank account, which HMRC and some Commission applications need first, none of these is a step in registering. Each one applies from the day you start the activity.
Everyone
- Keep the books from day one. A cashbook of money in and out, every receipt, money given for a specific purpose kept separate, and a monthly check against the bank statement. Your pack includes a cashbook spreadsheet with an example.
- Bank account in the organisation's name. Banks usually check everyone who will use the account or controls the organisation, and ask for the governing document. It can take weeks. Your pack has a checklist.
- Safeguarding. Every charity must protect the people it works with, its staff and volunteers. Have a safeguarding policy and procedures that suit your work, even if you don't work with children or adults at risk. Your pack includes one. Charity Commission safeguarding guidance (opens in new tab)
- Data protection. Check whether you must pay the ICO's data protection fee using the ICO's self-assessment (opens in new tab). Being exempt from the fee doesn't exempt you from data protection law.
What's this?
Money given for a specific purpose, such as a grant for a minibus, is a restricted fund: it can only be spent on that purpose, so keep track of it separately. The ICO is the Information Commissioner's Office, which regulates how organisations use personal information.
If you fundraise
You can fundraise before you're registered. Follow the Code of Fundraising Practice (opens in new tab). Registering with the Fundraising Regulator is voluntary: £60 a year for a charity spending under £100,000 on fundraising; other organisations pay more (registration fees (opens in new tab)). Only registered organisations may use the Fundraising Badge.
If you work with children or adults at risk
A DBS check is a criminal record check from the Disclosure and Barring Service. GOV.UK's DBS eligibility tool (opens in new tab) says which check each role can have. The Charity Commission says to assess the risks of every role and always get a standard or enhanced check when a role is eligible for one; where it isn't, get a basic check if your risk assessment says so. Your pack's safeguarding policy has a section for this.
If you employ anyone
- Employers' liability insurance from the first day, covering at least £5 million. Without it you can be fined £2,500 for every day. Display the certificate where employees can see it. Employers' liability insurance on GOV.UK (opens in new tab)
- Register with HMRC as an employer before the first payday, and run PAYE: taking income tax and National Insurance from pay and sending it to HMRC. Register as an employer (opens in new tab)
- Workplace pensions: use The Pensions Regulator's guide for new employers (opens in new tab) to see what you must do and by when.
If you use vehicles
Motor insurance is compulsory for any vehicle used on the road. Vehicle insurance on GOV.UK (opens in new tab)
If you take on premises
Read the lease before signing, and check who pays for repairs, business rates and insurance.
CICs: Corporation Tax
A CIC has no charity tax reliefs, so it can pay Corporation Tax on its taxable profits. Register for Corporation Tax within 3 months of starting to do business. Corporation Tax on GOV.UK (opens in new tab)