HMRC is organising a second public meeting this week to give people an opportunity to ask questions about the proposed Gift Aid Small Donations Scheme. A formal consultation on the measure will close on 25 May.
HMRC is organising a second public meeting this week to give people an opportunity to ask questions about the proposed Gift Aid Small Donations Scheme. A formal consultation on the measure will close on 25 May.
The reform was announced at Budget 2011, when HM Treasury said the scheme would allow charities to ‘claim Gift Aid on up to £5,000 of small donations per year without the need for Gift Aid declarations’.
Last week’s Queen's Speech announced a ‘Bill to reduce burdens on charities, enabling them to claim additional payments on small donations’. HMRC said in a press release on 9 May that the new scheme was ‘a spending measure, unlike Gift Aid which is a tax relief, because there is no link between the donor’s tax record and the payment to the charity’.
HMRC said in its introduction to the March 2012 consultation document: ‘Dropping the link between the donor and the top-up payment on the donation means that payments made under the [Gift Aid Small Donations Scheme (GASDS)] will not be repayments of tax. The GASDS, unlike Gift Aid, will not be a tax relief but will instead be funded through public expenditure. This means the scheme cannot be legislated through the tax code already in place, but must be legislated for separately, outside the annual Finance Bill process.’
Details of the public meeting are available on the HMRC website.
HMRC is organising a second public meeting this week to give people an opportunity to ask questions about the proposed Gift Aid Small Donations Scheme. A formal consultation on the measure will close on 25 May.
HMRC is organising a second public meeting this week to give people an opportunity to ask questions about the proposed Gift Aid Small Donations Scheme. A formal consultation on the measure will close on 25 May.
The reform was announced at Budget 2011, when HM Treasury said the scheme would allow charities to ‘claim Gift Aid on up to £5,000 of small donations per year without the need for Gift Aid declarations’.
Last week’s Queen's Speech announced a ‘Bill to reduce burdens on charities, enabling them to claim additional payments on small donations’. HMRC said in a press release on 9 May that the new scheme was ‘a spending measure, unlike Gift Aid which is a tax relief, because there is no link between the donor’s tax record and the payment to the charity’.
HMRC said in its introduction to the March 2012 consultation document: ‘Dropping the link between the donor and the top-up payment on the donation means that payments made under the [Gift Aid Small Donations Scheme (GASDS)] will not be repayments of tax. The GASDS, unlike Gift Aid, will not be a tax relief but will instead be funded through public expenditure. This means the scheme cannot be legislated through the tax code already in place, but must be legislated for separately, outside the annual Finance Bill process.’
Details of the public meeting are available on the HMRC website.
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