There is no statutory requirement for charities to follow this suggested procedure but asking managers to read the helpsheet and sign a declaration based on the model declaration included in the helpsheet is one way the charity can demonstrate to HMRC that it has taken the necessary steps to reassure itself its managers are fit and proper. Using the helpsheet and model declaration in the way suggested will mean that a charity can assume that they meet the management condition at all times unless they knowingly appoint a manager who isn’t a fit and proper person to a position from which the person is able to influence the charitable purposes of the charity or the application of its funds or, exceptionally, they are challenged by HMRC:
Charities should ask all newly appointed managers to read the helpsheet and sign a declaration based on the model declaration (the term ‘manager’ in this context means more than the everyday meaning of the word).
Assuming the manager signs the declaration then the charity should keep that declaration in case HMRC asks to see it. The declaration should be kept for the duration of the manager’s engagement with the charity, and for 4 years after the manager has departed.
If the new manager is to be one of the ‘authorised officials’ or ‘other officials’ as described below the charity will need to notify HMRC of their appointment on form ChV1.
The charity can then assume that they meet the management condition unless HMRC contacts them.
If the manager refuses to sign the declaration (and refuses to comply with any other attempts by the charity to verify their suitability as a fit and proper person) then the charity should decide for themselves whether that person should be appointed as a manager of the charity and what financial responsibilities they should be given.
If the person signs the declaration but adds additional information, the charity will need to consider that information and decide whether to seek advice from HMRC on what to do.