HMRC – Streamlined Gift Aid

HMRC have introduced new rules that will lift the administration burden for Charities claiming gift aid on the proceeds on donors gifts, sold by charity shops.

The new rules allow donors to make a one off Gift Aid application for donations of £100 to £1,000 of future sale proceeds in a tax year and the charity will only need to write to the donor if proceeds exceed this amount.

Under the current rules, charities are required to write to a donor before any Gift Aid can be claimed on the proceeds of a sale, so that the donor can confirm they are a UK taxpayer.

Sajid Javid, Economic Secretary to the Treasury, said:

“I’m delighted that we’ve been able to work with the charity sector to make Gift Aid simpler and less costly for charity shops. Gift Aid income from these shops is important for many charities, and we want to reduce the associated administrative costs as much as possible.”

The new procedures will apply from April 2013.