In April 2013, a number of enhancements to the Gift Aid scheme were introduced.<\/p>\n
Gift Aid Reclaims HMRC\u2019s online service; Small Donations Scheme Community Buildings Charity Shops The rules have now been relaxed to allow one-off gift aid declarations covering up to:<\/p>\n \u00a3100 of future sale proceeds from goods sold by a charity itself; or Get up to speed now! In April 2013, a number of enhancements to the Gift Aid scheme were introduced. Gift Aid Reclaims There are now three options for making gift aid reclaims: HMRC\u2019s online service; Third party or in-house software; Paper form ChR1, which replaces the old R68(i). These more automated processes undoubtedly enhance HMRC\u2019s ability to interrogate the data[…] <\/p>\n
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\nThere are now three options for making gift aid reclaims:<\/p>\n
\nThird party or in-house software;
\nPaper form ChR1, which replaces the old R68(i).
\nThese more automated processes undoubtedly enhance HMRC\u2019s ability to interrogate the data provided in claims and to investigate irregularities. It is therefore more important than ever to maintain proper records. For all donations, a minimum of the donor\u2019s initials and surname, house number and postcode should be recorded along with the date and value of the payment.<\/p>\n
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\nEligible charities and community amateur sports clubs can now take advantage of top-up payments on small cash donations of \u00a320 or less where it is difficult to collect a gift aid declaration. Stringent eligibility conditions restrict the scheme to those organisations with a good compliance history. Claims are capped at \u00a35,000 per year and there are rules to prevent connected bodies claiming more than \u00a35,000 between them. Every \u00a310 of small donation claims must be matched by \u00a31 of normal gift aid reclaims. This matching requirement and the lack of overall cap on normal gift aid reclaims should serve as incentive for charities to encourage donors to sign gift aid declarations whenever feasible.<\/p>\n
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\nAn additional \u2018community building amount\u2019 is available for small donations collected as part of charitable activities run in community buildings. These will typically be places of worship or town halls. The rules defining charitable activities and community buildings are detailed but are clearly designed to encompass things such as collections at regular church services, whilst excluding purely fundraising events. This additional relief is also subject to a cap of \u00a35,000 per community building used by the charity.<\/p>\n
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\nCharity shops are increasingly utilising arrangements that allow them to make gift aid reclaims on the value of donated goods sold. These arrangements typically involve shops selling goods as agents on behalf of donors who agree to donate the proceeds to the charity. Until recently, this required relatively sophisticated procedures to be able to trace and link sales to donors and invite them to donate the proceeds after sale.<\/p>\n
\n\u00a31,000 of future sale proceeds from good sold by a trading subsidiary.
\nCharities running their own shops may therefore wish to consider setting up a trading subsidiary.<\/p>\n
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\nAlthough these developments are generally welcomed by the charitable sector, organisations need to familiarise themselves with the new rules quickly to ensure they maximise the benefit.<\/p>\n","protected":false},"excerpt":{"rendered":"