An academies update: Latest sector guidance and a reminder of tax obligations
We have discussed the Charities Statement of Recommended Practice (SORP) 2026 consultation, trustee finance toolkit, and Code of Fundraising Practice in our not-for-profit and charities update earlier in the year.
Below, we explore more of the latest news and guidance which could affect academies.
New fundraising guidance
On 28 July 2025, the Chartered Institute of Fundraising published new guidance to strengthen best practice in relation to face to face fundraising. New points are focused on:
- Subcontracting: There are clear expectations for how charities and agencies should manage outsourced fundraising. Trustees must maintain visibility over who is representing their academy in public fundraising activities.
- Safeguarding fundraisers: The importance of fair working conditions, pay and policies for isolated roles such as door-to-door fundraising.
- Transparent recruitment: Clarity of roles and payment structures.
- Due diligence and oversight: Trustees and senior leaders must understand their responsibilities.
The update is the first major revision of face-to-face guidance in the UK since 2016.
Fundraising Regulator – three new guides
In July 2025, the Fundraising Regulator published three new guides to support with the revised code which comes into effect on 1 November 2025. The three guides cover:
These are practical guides to support trusts and help when planning and delivering fundraising events, online safety and wellbeing, advertising, distinguishing between in-aid-of and on-behalf-of online gaming fundraising, along with many other areas.
ICAEW trustee training
The ICAEW trustee training modules have been updated for 2025. The refreshed modules now support charity trustees in meeting their Continuing Professional Development (CPD) requirements.
The training consists of six core modules covering legal duties, financial responsibilities, board dynamics, risk management, planning for impact, and managing relationships.
The self-directed format with video presentations, case studies, reflective activities, and optional assessments, is free to access with an estimated learning time of 4-6 hours depending on experience.
Companies House register
Companies House register currently shows directors details including name, date of birth, registered address and occupation. From 21 July 2025 anyone listed on the register can apply to have the day of their date of birth removed. There is a £30 fee to remove any personal details, and the full guidance on what can be removed and how to action this can be found here.
Filing accounts by software only
Companies House have advised that as part of their journey to modernise and digitise filing routes, all accounts must be filed using commercial software from 1 April 2027. Their web and paper routes will be closed for accounts filings. This change will allow more efficient and secure filings for companies and will be a critical step towards improving the quality of the data on the register. Software-only accounts filing will create a single, cost-effective, sustainable and traceable way to file.
Civil Society Covenant
Prime Minister Sir Keir Starmer has officially launched the Civil Society Covenant, establishing a new framework for collaboration between civil society organisations and public bodies at both national and local levels.
As part of the launch, the government announced:
- A Joint Civil Society Covenant Council to oversee implementation, bringing together senior officials and civil society leaders
- A Local Partnerships Programme to strengthen relationships between local authorities, public bodies, and civil society
- A developing Voluntary, Community and Social Enterprise (VCSE) – HM Treasury forum for regular dialogue on economic and financial issues affecting the sector
This marks a significant step forward in recognising the role of civil society and ensuring communities are central to decision-making.
Charity Finance Group – Communicating with your bank
Following from the Charity Commission guidance on charity banking, which recognised the difficulties charities and academies are facing in this area, the Charity Finance Group (CFG) has issued guidance to help charities communicate with their bank, in particular about how to raise an issue or concern. It covers key areas such as responding to Know Your Customer requests, common challenges and how to raise an issue or complaint.
Corporation Tax compliance
Academies often do not have a Corporation Tax liability due to favourable tax exemptions, they still fall within the requirement to submit Corporation Tax returns, if not on an annual basis, at least on a 3–6-year periodical basis.
All academies must complete a Company Tax Return if HMRC issues them with a notice to deliver a Company Tax Return or they have income or gains which are not covered by a relief or exemption.
We have seen an increase in requests sent to our not-for-profit (NFP) and academy clients. Please do not ignore these and contact your engagement partner or tax representative for support.
UK charity tax relief statistics
In June 2025, HMRC released statistics on the UK charity tax reliefs. For the tax year ending April 2025, charity tax reliefs (where estimates are available) totalled approximately £6.7 billion, a 5% increase from the previous year.
Key reliefs included:
- £2.75 billion in business rates relief (up 7%)
- £1.7 billion in Gift Aid at the basic rate (up 7%)
- £820 million in Higher Rate Relief on Gift Aid donations (up 8%)
- £980 million in Inheritance Tax relief (up 2%)
Make sure your trust is maximising the charitable tax reliefs available by speaking to your Azets advisers.
HMRC guidance on VAT exemptions for fundraising events
Following the Upper Tribunal ruling in the Yorkshire Agricultural Society case, HMRC has clarified how VAT applies to income from charity fundraising events. Academies hosting events, such as festivals, dinners, tournaments, or shows, may now benefit from broader VAT exemptions, provided the events are:
- Clearly fundraising in nature
- Run by or for the benefit of the academy
- Held no more than 15 times per year per venue
Academies may also be eligible to reclaim overdeclared VAT on event income from the past four years, which could amount to significant sums (e.g. Yorkshire Agricultural Society reclaimed approx. £200,000). Going forward, academies should review how events are promoted and structured, ensuring materials clearly highlight their fundraising purpose aligned with the academy’s main aims, even if the event serves multiple purposes.
Academy trusts: Tips on writing trustee reports & governance statements
There is a natural tendency to focus on the numbers when preparing the annual financial statements, however there is an increasing focus on those extensive written sections that sit before the mass of numbers and disclosures.
The Department for Education (DfE) seem to be paying more attention, and the guidance in recent years from them has focused more on the contents. Other users are also looking at these reports, for example, there has been a steady stream of merger and other activity, and the due diligence process can involve a review of all information that supports the numbers, including trustee reports. It is an opportunity to provide useful context to the numbers, so with the annual financial statements being on the public record, it is important that trusts get this right.
It is the responsibility of the academy trust and not any other party to produce the reports. We get to see a lot of examples across Azets, so here are some useful tips in getting the content and the messages right.
- Draft the reports early. In many cases, the trustees’ report and governance statement has been a bit of an afterthought, and the preparation may be rushed. This leaves limited time for trustees and leaders to review and assess the content. The input of all trustees and the accounting officer is an essential feature of effective and compliant reporting.
- Don’t just duplicate last year’s reports. Some of the content may be okay to leave if there have been no changes, but it is very likely to see some significant changes year on year. You should think about any changes involving future plans, objectives, achievements, KPIs, financial matters, key risks, and internal audit findings. These are all examples of areas where there should be narrative to reflect the current position.
- Ensure the data is accurate and up to date. Whilst much of the content is narrative driven, there are some key numbers included. Make sure to obtain the relevant information early and ensure the report has the appropriate KPIs, financial information and meeting attendance data included.
- Additional requirements for larger trusts. Under company law, larger trusts have some additional requirements. This is defined as a trust where two of more of the following apply in two consecutive years – gross income over £36m, gross (total) assets over £18m, more than 250 employees. The additional requirements to report cover engagement with suppliers and customers, narrative around promoting the success of the company, and energy and carbon reporting. Trusts with more than 250 employees also need to include details on engagement with employees, regardless of the financial position.
- Ensure you add useful context to the numbers. Reproducing school data, KPIs and financial information is a useful starting point, but it should be supplemented by relevant narrative and context to paint a picture for the reader as to what it all means. This doesn’t need to be too extensive, but should include enough to leave the reader with a good understanding of what underpins the data.
- Use up-to-date examples in the review of value for money. We often see draft reports with very brief examples, or examples that have been duplicated from previous years. It’s important to highlight recent examples, and how this has impacted on the outcomes of the trust. It should also reference the use of funding to ensure the trust’s estates are safe and well maintained.
- Explain the effectiveness of the governance model. Ensure your reports are updated annually, explain any changes to people or processes, how you ensure effectiveness, the results of internal and external governance reviews and the key findings around the internal scrutiny process.
- Check your report against the DfE Coketown model accounts. The DfE’s Coketown model accounts include a very useful template, with guidance boxed and links to other documents. Does your report contain all of the information that is expected, and does it take account of the inevitable annual changes and the other information provided by the DfE?
We are here to help
If you have any questions on how the latest updates may impact you, please get in touch with a member of our specialist team via the form below or contact your usual Azets adviser.
