Gift Aid Small Donations Scheme
11th February 2013
The Gift Aid Small Donations Scheme (GASDS) is a new scheme which will be implemented by HMRC from 6th April 2013 to enable charities to claim a Gift Aid top up on small cash donations without requiring the donor to provide a Gift Aid declaration. This means charities will no longer miss out on being able to claim Gift Aid in those situations where it is not easy to get a signature and donor information.
In order to be eligible for the scheme, charities must:-
– Be registered with HMRC and have a HMRC charity reference number;
– Have a clean record with HMRC;
– Have claimed Gift Aid successfully for two out of the past four years.
Cash donations must be for less than £20 and received where it is difficult to obtain a Gift Aid declaration, i.e. collections during a religious service, bucket collections etc.
There is a maximum claim on donations of £5,000 giving a maximum Gift Aid top up of £1,250. All donations on which GASDS are claimed must be paid into the charity bank account.
In addition there is a matching principle which means that for every £10 donation you wish to claim GASDS on, you must have claimed Gift Aid on £1 that year already, i.e. if a claim is made under the Gift Aid Small Donations Scheme on £2,000 worth of small cash donations, the charity must also have made a claim on net gifts of £200 in the same year.
If you operate out of more than one community building there may also be scope for you to claim additional top-ups (possibly receiving the £5,000 maximum allowance per building – contact us for more details).
The claim must be made using the new Charities Online service, either through the web form, using the database option (if your software is compatible) or by completing the ChR1 paper claim form. Please note that restrictions and limitations apply. Contact us for more information and to find out if you are eligible to claim.