Commentary on Provisions The schedule Paragraph 15 – Annual returns
185.All charities in Scotland are asked to complete an annual return. This is used by OSCR to monitor charities’ activities and to provide up-to-date information for the public via the Register. However, originally, there was no statutory requirement to complete an annual return: it was done voluntarily or on the understanding that otherwise a notice would be issued under section 22 of the 2005 Act requiring the information requested in the return.
186.This paragraph of the Act’s schedule introduces a statutory requirement for all charities on the Register to complete an annual return. Under section 66(4) of the 2005 Act, failure to do so will be treated as misconduct in the administration of the charity. It could lead to OSCR making inquiries into the suitability of the charity trustees under section 28 of the 2005 Act.
187.It will be for OSCR to determine the form and content of the annual return. As at the time of publication of these notes (August 2023), the level of detail required depends on a charity’s gross income: additional questions are asked for charities where this is £25,000 or above, and further questions still are asked for charities where this is £250,000 or above. There are also extra questions which are asked of cross-border charities or registered social landlords. OSCR will continue to be able to vary the form and content for different types of charities in the same way it did previously. However, OSCR will have to publicise the requirements that it imposes so that charities know what is required of them.
188.Charities will be required to submit the annual return to OSCR by the date their statement of account for the financial year is due each year. As at the time of publication of these notes (August 2023), the deadline for the submission of accounts is set in regulation 5 of the Charities Accounts (Scotland) Regulations 2006 (SSI 218/2006) and is set at 9 months after the end of the charity’s financial year in most cases. Where a charity is removed from the Register, this is set as 9 months from the date of that removal, but that will not be relevant for the purpose of this provision as former charities are not charities and so will not be required to submit an annual return under this provision.