| Fair Tax Foundation Limited |
| Accountant's Report |
| for the year ended 31 December 2025 |
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| Independent reporting accountant’s report to the Directors on the unaudited accounts of Fair Tax Foundation |
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We report on the accounts for the year ended 31 December 2025 set out on pages 8 to 15.
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| Respective responsibilities of the committee of management and the independent reporting accountant |
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| The society’s committee of management is responsible for the preparation of the accounts, and they consider that the society is exempt from an audit. It is our responsibility to carry out procedures designed to enable us to report our opinion. |
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| Basis of opinion |
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| Our procedures consisted of comparing the accounts with the books of account kept by the society and making such limited enquiries of the officers of the society as we considered necessary for the purpose of this report. These procedures provide the only assurance expressed in our opinion. |
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| Opinion |
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In our opinion:
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| o |
the revenue account and balance sheet for year ended 31 December 2025 are in agreement with the books of account kept by the society under section 75 of the Co-operative and Community Benefit Societies Act 2014; |
| o |
having regard only to, and on the basis of the information contained in the books of account, the revenue account and balance sheet for the year ended 31 December 2025 comply with the requirements of the Co-operative and Community Benefit Societies Act 2014; and |
| o |
the society met the financial criteria enabling it to disapply the requirement to have an audit of the accounts for the year specified in section 84 of the Co-operative and Community Benefit Societies Act 2014. |
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| Signed |
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| Third Sector Accountancy Limited |
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| Date |
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| Holyoake House |
| Hanover Street |
| Manchester |
| M60 0AS |
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| Fair Tax Foundation Limited |
| Balance Sheet |
| as at 31 December 2025 |
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| Note |
2025 |
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2024 |
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£ |
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£ |
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£ |
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£ |
| Fixed assets |
| Tangible assets |
4 |
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1,241 |
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1,632 |
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| Total fixed assets |
1,241 |
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1,632 |
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| Current assets |
| Debtors |
5 |
89,032 |
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107,793 |
| Cash at bank and in hand |
684,116 |
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692,426 |
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| Total current assets |
773,148 |
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800,219 |
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| Liabilities |
| Creditors: amounts falling |
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due in less than one year |
6 |
(124,335) |
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(173,820) |
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| Net current assets |
648,813 |
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626,399 |
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| Total assets less current liabilities |
650,054 |
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628,031 |
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| Net assets |
650,054 |
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628,031 |
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| Capital and reserves |
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| Share capital |
7 |
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647,859 |
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611,836 |
| Revenue account |
2,195 |
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16,195 |
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| Total shareholders' funds |
650,054 |
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628,031 |
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| For the year ending 31 December 2025 the society was entitled to disapply the requirement to have its financial statements for the financial year audited. The members passed a resolution in general meeting to disapply the audit requirement, as required by S84(2) Co-operative and Community Benefit Societies Act 2014. |
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
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| Approved by the board on 21/05/2026 and signed on their behalf by: |
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Chris Harrop |
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(Chris Harrop, Director) |
(Penny Hogan, Director) |
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(Rob Harrison, Secretary) |
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| Fair Tax Foundation Limited |
| Statement of Changes in Equity |
| for the year ending 31 December 2025 |
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Share capital |
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Profit and Loss Account |
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Total |
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£ |
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£ |
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£ |
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| At end date 31 December 2023 and start date 1 January 2024 |
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113,664 |
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20,780 |
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134,444 |
| Profit for the year and total comprehensive income |
- |
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22,496 |
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22,496 |
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| Interest paid on members' shares |
- |
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(5,029) |
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(5,029) |
| New shares issued to members |
498,172 |
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- |
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498,172 |
| Share issue costs |
- |
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(22,052) |
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(22,052) |
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| At end date 31 December 2024 and start date 1 January 2025 |
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611,836 |
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16,195 |
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628,031 |
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| Profit for the year and total comprehensive income |
- |
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22,014 |
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22,014 |
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| Interest paid on members' shares |
- |
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(36,014) |
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(36,014) |
| New shares issued to members |
36,043 |
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- |
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36,043 |
| Shares repaid to members |
(20) |
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- |
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(20) |
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| As at 31 December 2025 |
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647,859 |
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2,195 |
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650,054 |
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| Interest on society shares is required by Financial Reporting Standard 102 to be included in the statement of equity rather than in the Revenue account. However, this interest is not a distribution of profit but a cost of capital and an expense of the business, and remains tax-deductible. |
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| Fair Tax Foundation Limited |
| Notes to the accounts for the year ended 31 December 2025 |
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| 1 |
Accounting policies |
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The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows: |
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1.1 |
Basis of preparation |
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The financial statements are prepared under the historical cost convention and in accordance with the FRS 102 Section 1A Small Entities - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Co-operative and Community Benefit Societies Act 2014. |
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1.2 |
Turnover |
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Turnover represents Fair Tax Trademark assessments, licence fees and other services charged to customers, as well as sponsorship and grant income recognised in the period. Licence fees are invoiced annually in advance and recognised on an accruals basis; amounts relating to future periods are deferred. Donations are represented as "Other operating income". Grants towards activities over a specific period are recognised in the Revenue account over that period. |
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1.3 |
Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases: |
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Fixtures & Fittings |
25% |
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Computer Equipment |
33.33% |
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1.4 |
Taxation |
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Income tax expense represents the sum of the tax currently payable and deferred tax. |
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The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the revenue account because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The society's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. |
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Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. |
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| Fair Tax Foundation Limited |
| Notes to the accounts for the year ended 31 December 2025 (continued) |
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Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Society expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. |
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Current or deferred tax for the year is recognised in the revenue account, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively. |
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1.5 |
Grants |
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Grants for immediate financial support or to cover costs already incurred are recognised immediately in the revenue account. Grants towards general activities of the entity over a specific period are recognised in the profit and loss account over that period. |
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Grants towards fixed assets are recognised over the expected useful lives of the related assets and are treated as deferred income and released to the revenue account over the useful life of the asset concerned. |
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Government grants are recognised in the profit and loss account in an appropriate manner that matches them with the expenditure towards which they are intended to contribute. |
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All grants in the revenue account are recognised when all conditions for receipt have been complied with. |
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| 2 |
Average Number of Employees |
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Average number of employees, including directors, during the year was as follows: 7.6 (2024: 8.4) |
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| Fair Tax Foundation Limited |
| Notes to the accounts for the year ended 31 December 2025 (continued) |
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3 |
Tax on Profit |
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2025 |
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2024 |
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£ |
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£ |
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UK Corporation Tax |
(3,269) |
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3,554 |
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Adjustments in respect of prior years |
(33) |
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- |
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Total Current Tax |
(3,302) |
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3,554 |
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Current Tax Reconciliation |
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For the year ended 31 December 2025, the Society recorded a tax loss. As corporation tax due for the prior year exceeded these tax losses, the Society was able to carry back the losses in full. Consequently, a current tax credit is reflected within the Revenue Account. Details regarding the tax adjustments during the year that led to the Society's tax loss position are explained below: |
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2025 |
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2024 |
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£ |
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£ |
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Profit before Tax |
18,712 |
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26,050 |
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Corporation tax at the small profits rate (19%) |
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3,555 |
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4,950 |
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1. Adjustments in respect of prior years |
(33) |
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- |
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2. Depreciation vs capital allowances |
18 |
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890 |
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3. Interest on members' shares |
(6,842) |
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(956) |
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Non-taxable grant income |
- |
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(1,330) |
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Current tax charge/ (credit) |
(3,302) |
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3,554 |
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1 |
The corporation tax charge in the Society's 2024 accounts was very slightly overstated compared with the actual amount due once the corporation tax return was submitted. Therefore, a small prior year adjustment was required for the current year. |
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2 |
The treatment of fixed assets is different for accounting and tax purposes. For accounting purposes, fixed assets are depreciated over their useful economic lives. For tax purposes, there are specific rules on what can be claimed and when (capital allowances). These differences usually create tax adjustments. However, these tax adjustments are only timing differences, as eventually the total depreciation charged in the accounts will match the total capital allowances claimed in the tax returns. The Society has not made a provision in its accounts in relation to these timing differences (i.e. no deferred tax has been accounted for). |
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3 |
Interest on society shares is required by Financial Reporting Standard 102 to be included in the Statement of Changes in Equity rather than in the Revenue Account. However, this interest is not a distribution of profit; it is a cost of capital and an expense of the business, and remains tax-deductible. Therefore, the Society's profit before taxation of £18,712 does not take into account members' interest of £36,014. This resulted in a tax adjustment of £6,842 (£36,014 x 19%) for the current year. |
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As at 31 December 2025, the Society had no deferred tax assets or liabilities on its balance sheet (2024: £nil). The Society also does not have any uncertain tax positions. |
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| Fair Tax Foundation Limited |
| Notes to the accounts for the year ended 31 December 2025 (continued) |
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| 4 |
Fixed assets: tangible assets |
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Fixtures & |
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Computer |
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Total |
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Fittings |
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equipment |
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Cost |
£ |
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£ |
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£ |
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At 1 January 2025 |
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15,332 |
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14,614 |
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29,946 |
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Additions |
236 |
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1,482 |
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1,718 |
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At 31 December 2025 |
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15,568 |
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16,096 |
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31,664 |
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Depreciation |
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At 1 January 2025 |
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14,277 |
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14,037 |
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28,314 |
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Charge for the year |
919 |
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1,190 |
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2,109 |
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At 31 December 2025 |
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15,196 |
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15,227 |
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30,423 |
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Net book value |
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At 31 December 2025 |
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372 |
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869 |
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1,241 |
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At 31 December 2024 |
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1,055 |
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577 |
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1,632 |
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| 5 |
Debtors |
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2025 |
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2024 |
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£ |
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£ |
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Trade debtors |
52,929 |
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99,873 |
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Prepayments and accrued income |
32,834 |
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7,920 |
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Corporation tax |
3,269 |
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- |
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89,032 |
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107,793 |
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| 6 |
Creditors: amounts falling due within one year |
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2025 |
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2024 |
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£ |
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£ |
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Trade creditors |
190 |
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15,219 |
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Corporation tax |
- |
|
3,554 |
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Taxation and social security costs |
18,297 |
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24,227 |
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Accruals and deferred income |
105,848 |
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130,820 |
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124,335 |
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173,820 |
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| Fair Tax Foundation Limited |
| Notes to the accounts for the year ended 31 December 2025 (continued) |
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| 7 |
Share Capital |
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2025 |
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2024 |
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£ |
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£ |
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Members' shares |
647,859 |
|
611,836 |
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All shares have a nominal value of £1 and cannot be transferred. Shares may be redeemed at par at the discretion of the board. Interest may be paid on shares at the discretion of the board. Shares do not entitle the shareholder to the assets in the event of a winding up, but shareholders are entitled to attend and vote at the Annual General Meeting with one vote per member regardless of the number of shares held. |
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| 8 |
Related Party Transactions |
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Rob Harrison was a director of Fair Tax Foundation Limited and of Ethical Consumer Research Association Limited (ECRA) in 2025. During the year ECRA made the following charges to Fair Tax Foundation Limited on normal commercial terms: |
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2025 |
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2024 |
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£ |
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£ |
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Governance support |
4,400 |
|
6,820 |
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Project consultancy |
- |
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6,745 |
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4,400 |
|
13,565 |
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The value of ECRA's shareholding in Fair Tax Foundation Limited, including accrued interest, is £9,728 (2024: £9,177) |
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| 9 |
Grants |
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Luminate |
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Trust for London |
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Total |
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Total grants b/f |
30,254 |
|
3,683 |
|
33,937 |
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Total new grants received |
11,050 |
|
11,050 |
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Recognised in income in the year |
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(30,254) |
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(14,733) |
|
(44,987) |
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Total grants c/f |
- |
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- |
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- |
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| 10 |
General Information |
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Fair Tax Foundation Limited is a community benefit society, limited by shares, incorporated in England & Wales, registered number 32308R. The registered office is Holyoake House, Hanover Street, Manchester, M60 0AS |
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