Shops get new guidance on Gift Aid claims

HM Revenue & Customs (HMRC) has published long-awaited guidance on the new rules for claiming Gift Aid on the sale of goods in charity shops.

Under the new measures, originally announced in December last year and which went live from April 2013, people who donate goods to charity shops can make one-off Gift Aid declarations, so that the charities involved do not have to write to them after items are sold before the relief can be claimed.

The new processes, which are optional for shops and donors, allow donors to authorise the gift of up to £100 of sale proceeds, for goods sold by a charity operating the shop directly, or £1,000 of proceeds, where shops are operated by a trading subsidiary, without the shop needing to seek the supporter’s permission to claim the tax relief.

Following publication of the new guidance, the Institute of Fundraising said it was believed few charities had implemented the new rules when they came into effect because they had wanted to wait for guidance explaining them in more detail.

It added: “It is hoped that the new guidance will now indeed allow charities to take advantage of the new rules, which were designed to cut the universally excepted inefficiencies.”

Nicklin can provide expert advice on the new rules and any other aspect of Gift Aid. For more information, please contact us.

Posted in Business News, Charity News.