HMRC Recognition vs Charity Commission Registration: The Two Separate Steps

Many founders and trustees discover the gap only after their charity is registered: the charity number arrives, then they try to claim Gift Aid and nothing happens. The reason is that Charity Commission registration and HMRC recognition are two entirely separate applications to two separate bodies. Registration puts your charity on the public register. Recognition is what unlocks the tax reliefs.

The short answer

Charity Commission registration makes you a registered charity on the public register, assigns you a charity number and places you under the Commission's regulatory oversight. HMRC recognition is a separate application to HMRC that makes you eligible for charity tax reliefs, including Gift Aid and the Gift Aid Small Donations Scheme (GASDS). You can be registered with the Commission but not yet recognised by HMRC. Until HMRC recognises your charity, you cannot claim Gift Aid or most other charity tax reliefs.

What Charity Commission registration gives you

Once your income exceeds £5,000 per year, you must register with the Charity Commission (in England and Wales). A charitable incorporated organisation (CIO) must register whatever its income. Registration delivers three things.

• A charity number and public register entry. Your charity appears on the public register, which donors, funders and grant-makers can search. Many grant applications require a charity number.
• Public accountability. Your charity's name, purposes, trustees, income and spending become publicly visible. This builds donor confidence.
• Regulatory recognition. The Commission becomes your regulator. It sets the compliance framework, handles serious incident reports and has powers to intervene where charities are mismanaged.

What Commission registration does not give you: Gift Aid, GASDS, exemption from income or corporation tax on charitable income, or access to other HMRC charity reliefs. Those require a separate step.

What HMRC recognition gives you

HMRC recognition is the status that unlocks charity tax reliefs. Once recognised, your charity benefits from the following.

• Gift Aid. Your charity can claim 25p for every £1 donated by a UK taxpayer who has signed a valid Gift Aid declaration. This is often the single most valuable relief for smaller charities.
• Gift Aid Small Donations Scheme (GASDS). A top-up on small cash and contactless donations of £30 or less, on up to £8,000 of donations per tax year, without needing individual declarations. The 10x matching rule applies: GASDS donations claimed cannot exceed ten times the donations on which Gift Aid is claimed in the same year.
• Tax exemptions on charitable income. Charities do not pay tax on most types of income as long as the money is used for charitable purposes. A return is only needed if non-exempt income arises or HMRC issues a notice.
• Other reliefs. These include stamp duty land tax relief, inheritance tax reliefs on gifts to charity, and the donor-side higher-rate Gift Aid reclaim available to donors paying income tax above the basic rate.

Why one does not follow automatically from the other

This is the point most founders miss. The Charity Commission and HMRC are entirely separate bodies with separate registers, separate application processes and separate criteria. There is no automatic notification between them. Completing your Commission registration does not trigger an HMRC recognition application, and HMRC does not check the Commission register as a proxy for recognition.

The two bodies assess different things. The Commission asks whether your organisation is established for exclusively charitable purposes under the law of England and Wales, and whether it is run by fit and proper persons. HMRC asks whether your organisation meets its definition of a charity for tax purposes and whether its responsible persons are fit and proper. The tests overlap substantially but the applications are separate.

In practice, most charities apply for Commission registration and HMRC recognition around the same time, but the recognition application goes to HMRC through the online charities and tax service, not through the Commission portal.

Comparison: Commission registration versus HMRC recognition

	Charity Commission registration	HMRC recognition
What it is	Entry on the public charity register; assigns a charity number	HMRC status confirming eligibility for charity tax reliefs
What it unlocks	Charity number (needed for many grants); public register entry; Commission regulatory framework	Gift Aid; GASDS; exemption from tax on most charitable income; other HMRC charity reliefs
Who you apply to	Charity Commission for England and Wales	HM Revenue and Customs (via the online charities and tax service)
When required	Income over £5,000/year; CIOs always; not required for excepted or exempt charities	Required to access any HMRC charity tax relief; no income threshold
Regulator	Charity Commission (ongoing regulator)	HMRC (administers tax reliefs; the Commission remains your regulator)

How to apply for HMRC recognition

The application is made through the online charities and tax service on gov.uk/charities-and-tax. The process is procedural rather than advisory, and you will typically need the following before you start.

1. Confirm your charity's legal structure and governing document. You will need to supply (or reference) your governing document: a constitution, trust deed, memorandum and articles, or CIO constitution. HMRC uses this to confirm the charity's purposes are exclusively charitable.
2. Gather your Commission registration details (if registered). Your charity number and registration date speed up the application. If you are applying before Commission registration completes, note that HMRC recognition is not technically conditional on Commission registration, but having it simplifies the process.
3. Prepare your bank account details. HMRC will ask for the charity's bank account information. Gift Aid repayments are made to this account.
4. Identify your responsible persons. HMRC requires details of the people responsible for the charity's finances, sometimes called the authorised official and the nominee. All responsible persons must pass HMRC's fit and proper persons test.
5. Submit the application online. Use the charities and tax service at gov.uk/charities-and-tax. Do not rely on a specific form reference number in this guide, as the online service is updated periodically; the gov.uk page is the authoritative current route.
6. Wait for HMRC confirmation before claiming. Do not submit a Gift Aid claim until you have received written confirmation of recognition from HMRC. Claims submitted before recognition will be rejected.

Special cases: excepted charities, exempt charities and CASCs

Not all charities with charitable status are on the Charity Commission register. Two categories sit outside the register by law.

• Excepted charities (certain categories including some churches and scout groups) are not required to register with the Commission, though they are still charities in law. They can still apply for HMRC recognition and access Gift Aid. Excepted charities do not appear on the public register.
• Exempt charities (certain universities, museums, and other bodies regulated by a principal regulator) are also outside the Commission register but are charities in law. HMRC recognition is available to them through the same route.
• Community Amateur Sports Clubs (CASCs) are recognised by HMRC and can access Gift Aid, but they are not registered charities and are not regulated by the Charity Commission. CASCs have their own registration regime. Do not conflate a CASC with a charity: the eligibility rules and reliefs are distinct.

If your organisation falls into one of these categories, the rules are specific and the general guidance on this page may not apply in full. Check the relevant Commission or HMRC guidance for your category, or take advice.

What "recognised by HMRC" does not mean

HMRC recognition is sometimes misread as HMRC becoming a second regulator of the charity. It does not. HMRC administers charity tax reliefs and checks that your charity continues to meet the qualifying conditions. The Charity Commission remains your regulator for all purposes: compliance with charity law, governance, use of charitable funds, and public accountability. If the Commission has concerns about your charity, HMRC recognition does not shield you from regulatory action.

Recognition also does not mean your charity is exempt from all tax forever. If non-exempt income arises (for example, profits from a non-primary-purpose trading activity that exceeds the small trading exemption limits), that income remains taxable. Recognition is the gateway to the reliefs; it does not override the detailed rules governing each relief.

Frequently asked questions

Do I need to register with HMRC as well as the Charity Commission?

Yes. These are two separate steps with two separate bodies. The Charity Commission registration gives you a charity number and public register entry. HMRC recognition, applied for separately through the online charities and tax service, is what gives your charity access to Gift Aid and other tax reliefs. See gov.uk/charities-and-tax for the current application route.

Can a charity claim Gift Aid without HMRC recognition?

No. As gov.uk states, to benefit from charity tax reliefs "you must be recognised by HM Revenue and Customs". Commission registration alone does not unlock Gift Aid. See the Gift Aid complete guide for how recognition, declarations and claims work together.

What is the difference between a registered charity and one recognised by HMRC?

A registered charity is on the Charity Commission public register and has a charity number. An HMRC-recognised charity has completed a separate HMRC application and can access Gift Aid, GASDS and tax exemptions on charitable income. A charity can be registered with the Commission but not yet recognised by HMRC, and in principle a charity can seek HMRC recognition before Commission registration is complete.

Do small charities under £5,000 need HMRC recognition?

Charities below the £5,000 income threshold are not required to register with the Commission (CIOs are the exception and must always register). HMRC recognition is not gated on Commission registration, so a sub-£5,000 unregistered charity may still be able to apply for recognition and access Gift Aid. The gov.uk charities and tax page is the authoritative source for the current position; check it directly before applying.

What do I need to apply for HMRC recognition?

The HMRC online charities and tax service asks for your governing document, charity registration details (if registered), bank account details for Gift Aid repayments, and details of the responsible persons (trustees or officials). Do not rely on a specific form reference number in this guide; the service is updated periodically and the gov.uk page gives the current route.

Is HMRC recognition the same as being on the charity register?

No. The charity register is held by the Charity Commission and lists registered charities with their numbers, purposes and accounts. HMRC recognition is a separate status held by HMRC that enables access to tax reliefs. The two are independent of each other, though most mid-sized and larger charities hold both.

Can a charitable company get recognition without Commission registration?

In principle yes. HMRC recognition is not technically conditional on Commission registration. A charitable company must register with both the Commission (if eligible by income) and Companies House, but if Commission registration is in progress, the HMRC application can still proceed. In practice most charitable companies complete both processes together.

Next steps

If your charity is registered but not yet HMRC-recognised, the next step is the online application at gov.uk/charities-and-tax. Once you have recognition, the Gift Aid complete guide covers declarations, claim submissions and the GASDS rules in full. For the wider setup process, including choosing a structure and the Commission application itself, see the step-by-step guide to setting up a charity or CIO. The GASDS rules post covers the small donations scheme in detail, including the 10x matching rule and community buildings allowances.

If you would prefer to hand the HMRC recognition application and ongoing Gift Aid claiming to an adviser, the Gift Aid service covers the full process from recognition through to regular claim submissions.