HM Revenue and Customs has notified 3,000 charities that it will require them to complete a tax return this year.
In February, HMRC officials told the Charity Tax Group that as part of a compliance review the 3,000 charities with the largest Gift Aid claims would be asked to complete a tax return this year.
HMRC also said it plans to send requests for tax returns to a random sample of several hundred community amateur sports clubs.
Charities will be asked to complete a return to show the exemptions they are claiming any whether any corporation tax is due.
Most charities are not regularly asked to complete tax returns so this will be a new experience for them.
In recent weeks, charities have reported being sent a letter notifying them that a request for a tax return will be sent.
A sample letter published by CTG says: “You may have to pay a penalty if your tax return is late, or you do not complete one when you should.”
A CTG spokesperson said: “We are working with HMRC to make sure the guidance is as accessible as possible going forward, but await feedback from charities on how they find this process. It remains to be seen if this is a one-off compliance review or will become a more regular occurrence.”
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