HMRC would always encourage a person who is appointed as a manager of a charity to be open and honest with the charity to prevent problems arising. If the charity knows a person may fail the fit and proper persons test they can seek early advice from HMRC about what to do to prevent any loss of tax reliefs. Where the charity hasn’t already approached HMRC but HMRC is concerned that a manager may not be a fit and proper person HMRC will normally notify that person of the grounds for concern and give them the opportunity to challenge HMRC’s view. The person may wish to include the charity in the discussions but there is no obligation to do so. If following the discussions HMRC continues to consider the person isn’t a fit and proper person, and also considers that it wouldn’t be appropriate to exercise its discretion in relation to the management condition, HMRC will notify the person in writing of their decision. If the person is dissatisfied with HMRC’s decision that they aren’t a fit and proper person they can ask for that decision to be reviewed by a senior manager in HMRC Charities. The person should write to:
Charities, Savings and International 2
HM Revenue and Customs
BX9 1BU
Which senior manager reviews the case will depend on who in HMRC took the decision the person wasn’t ‘fit and proper’. The decision would normally be reviewed by a manager not involved in the original decision. If the reviewing manager considers the original decision was correct and the person is still dissatisfied with the decision that they aren’t a fit and proper person they can ask for that decision to be reviewed again by the Head of HMRC Charities. The person should write to the Head of HMRC Charities, at the address shown above. If the Head of HMRC Charities upholds the decision and the person is still dissatisfied then they can ask the Adjudicator to look into the case. The Adjudicator is a fair and unbiased referee, and the service is free. The Adjudicator will look at the complaint only after it has been considered by the Head of HMRC Charities. The Adjudicator’s Office looks into complaints about mistakes and the use of discretion in HMRC (amongst other issues). A complaint should be raised with the Adjudicator’s Office within 6 months of a decision by the Head of HMRC Charities, and the Adjudicator aims to reply to initial contact within 10 days. The Adjudicator’s Office will need certain information such as contact details, as well as details about the specific complaint being made as detailed on the Adjudicators Office website. A friend, relative or professional adviser may represent the person, but the person must submit written authority to the Adjudicator’s Office first. The Adjudicator’s Office will initially screen the person’s complaint and if content that HMRC has had sufficient opportunity to consider the position fully (that is the Head of HMRC Charities has given their decision) the Adjudicator’s Office will consider an investigation. As part of any investigation, the person may be asked to attend (or the person may request) a meeting to give further information or evidence. Adjudicator’s Office enquiries may conclude by way of a recommendation letter (setting out what, if anything, HMRC should do to put the position right) or by way of mediation where the Adjudicator’s Office will set out a resolution acceptable to the person and HMRC. You can find out about the HMRC Complaints procedure on the GOV.UK website.