The Office of Tax Simplification has responded to HMRC’s consultation on simplifying the gift aid small donations scheme (GASDS). The OTS recommendations include:
* relaxing the ‘two in four’ eligibility rule, requiring the charity to have made a successful gift aid claim in at least two out of the previous four tax years, as it should be sufficient for a charity to be able to show one year’s compliance history;
* replacing the rule limiting a GASDS claim to ten times a charity’s main gift aid claim with the requirement only for the charity to have made a successful gift aid claim, subject to a simple de minimis of £100;
* allowing spontaneous forms of giving, such as text messaging and contactless debit and credit cards;
* recasting the connected charities rule to allow any charity, whether connected to others or not, which operates one or more community buildings an aggregate allowance equivalent to £8,000 per building, whilst removing the restriction on funds received outside the building; and
* providing an online form to show the amount of claims made by the charity to date when they make a second or subsequent in-year claim. See http://bit.ly/29OQ6x5.
The Office of Tax Simplification has responded to HMRC’s consultation on simplifying the gift aid small donations scheme (GASDS). The OTS recommendations include:
* relaxing the ‘two in four’ eligibility rule, requiring the charity to have made a successful gift aid claim in at least two out of the previous four tax years, as it should be sufficient for a charity to be able to show one year’s compliance history;
* replacing the rule limiting a GASDS claim to ten times a charity’s main gift aid claim with the requirement only for the charity to have made a successful gift aid claim, subject to a simple de minimis of £100;
* allowing spontaneous forms of giving, such as text messaging and contactless debit and credit cards;
* recasting the connected charities rule to allow any charity, whether connected to others or not, which operates one or more community buildings an aggregate allowance equivalent to £8,000 per building, whilst removing the restriction on funds received outside the building; and
* providing an online form to show the amount of claims made by the charity to date when they make a second or subsequent in-year claim. See http://bit.ly/29OQ6x5.
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