In April 2016, HMRC simplified and shortened the model Gift Aid declaration. However, in doing so it has clarified that if an individual has not paid sufficient tax to cover the tax reclaimable by the charity on the donation, the individual is responsible for paying the difference to HMRC.
The new style declarations should have been in use from the 6 April 2016. However:
- if an individual has signed an old style declaration form which covers multiple donations, there is no need for that individual to make a new declaration
- if a charity holds stocks of printed materials that were ordered and printed before 21 October 2015, that stock can continue to be used.
- A declaration by a donor can alternatively be made verbally or online (eg via a website). Whichever method is used, charities need to ensure they use the updated wording.
Retail Gift Aid Scheme Changes
HMRC have updated their procedures for charities operating charity shops where donors agree to donate the sale proceeds of the goods to the charity using the Gift Aid system to increase the value of donations. Updated letter templates, which must be sent to donors, are now available.
The templates are available here.