New Requirements for Gift Aid Declarations

HMRC has updated its requirements for Gift Aid declarations. It is important that you review and, if necessary, amend the wording that you use.

HMRC now require that donors confirm they have been given an explanation that they must pay enough Income or Capital Gains Tax to cover all Gift Aided donations that they intend to make that year.  Previously, donors were asked to confirm only that they pay enough tax to cover the gift to your charity.

This does not represent a change in the law but a clarification of HMRC’s requirements.  HMRC say that if charities use this new form they can be confident HMRC will not later challenge a Gift Aid claim on the grounds that the donor gave an invalid declaration, i.e., because they were not in fact paying sufficient tax.  This risk applies particularly to large donations.

You have until 31 December 2012 to change your declarations.  There are model declarations available on HMRC’s website and a checklist for Gift Aid donations.

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