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Notes to the financial statements
1.3 Expenditure
1.6. Taxation
The financial statements are prepared in accordance
with the accruals concept. All expenditure is recognised
once there is a legal or constructive obligation to make
a payment to a third party.
The Charity is considered to pass the tests set out
in Paragraph 1 Schedule 6 of the Finance Act 2010
and therefore it meets the definition of a charitable
company for UK corporation tax purposes. Accordingly,
the Charity is potentially exempt from taxation in
respect of income or capital gains received within
categories covered by Chapter 3 Part 11 of the
Corporation Tax Act 2010 or Section 256 of the
Taxation of Chargeable Gains Act 1992, to the extent
that such income or gains are applied exclusively to
charitable purposes.
a) Cost of raising funds
The costs of raising funds are the costs associated with
generating income for King’s College Hospital Charity.
b) Expenditure on charitable activities
Expenditure on charitable activities includes grants
payable as well as other costs including support costs.
Grants payable are payments made to third parties,
primarily King’s College Hospital NHS Foundation
Trust, in the furtherance of the Charity’s objectives.
They are accounted for on an accruals basis where the
conditions for their payment have been met or where
a third party has a reasonable expectation that they
will receive the grant and when the liability can be
quantified with reasonable certainty.
c) Support costs
Support costs, which include governance costs,
relate to those functions that assist the work of the
Charity but are not directly undertaking fundraising
or charitable activities. These costs have been
apportioned between the cost of raising funds and
expenditure on charitable activities based on the
estimated proportion of staff time engaged in these
activities.
d) Irrecoverable VAT
Irrecoverable VAT is charged as a cost against the
activity for which the expenditure was incurred.
1.7. Tangible fixed assets
Capitalisation:
Assets are capitalised at cost if they individually or
collectively, if purchased in a group, cost more than
£1,000.
Depreciation:
The IT equipment and software are depreciated over
the expected economic life of three years. Furniture,
fixtures & fittings are depreciated over the expected
economic life of five years.
As at the balance sheet date, there was no indication
that the recoverable amount of any fixed asset was
below its net book value.
Where fixed assets have been revalued, any excess
between the cost and the revalued amount would be
shown in a revaluation reserve.
1.8. Investments
1.4. Employee benefits
The costs of short-term employee benefits are
recognised as a liability and an expense.
1.5. Pensions contributions
Pension costs for all staff are charged to the statement
of financial activities when they become due. The costs
all relate to defined contribution schemes.
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S U P P O R T K I N G S .O R G .U K
Investment fixed assets are shown at market value.
Valuation gains and losses are recorded in the
statement of financial activities as they arise with
the balance sheet reflecting the revalued amounts.
Realised gains and losses on investments are calculated
as the difference between sales proceeds and opening
market value (or date of purchase if later). Unrealised
gains and losses are calculated as the difference
between market value at the year end and opening
market value (or date of purchase if later).
