The new Gift Aid rules are set to come into effect in April 2017.

The government is still reviewing responses to the consultation, but once completed, draft Regulations will be made later this year under the Donations to Charity Regulations of 2016.

Measures are designed to make it easier for donations to be made via text messages or SMS but to still benefit from GIFT AID contributions.

Currently the charity or intermediary’s claim has to be supported by the donor’s name, address and confirmation that the donor is a tax payer. Under the new proposals the government is proposing a system whereby there is one declaration per intermediary who will then be able to create a declaration for all donations that the donor makes for the rest of the tax year. This should relieve the burden on intermediaries who currently have to obtain a Gift Aid declaration for each individual charity a donor donates to.

There are up to 139,000 charities registered for Gift Aid. Less than 70,000 actually claim Gift Aid as this stand.

It is anticipated that if the new procedures are adopted in April this will mean a donor using a fundraising website to sponsor various different parties and raising money for multiple charities will be able to complete one Gift Aid declaration on the website effectively allowing (authorising) the intermediary to register the donor across the board for a 12 month period. The onus is on the donor to notify any change in tax status during this period.

HMRC will issue guidance to cover intermediaries and their role in administering Gift Aid around the same time as the new regulations come into force.

We work with many charities throughout Hampshire. If we can help you with your accounts and/or your accounts administration please do not hesitate to call or email.   (e)   (t) 01962 715671