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HMRC introduced changes to Gift Aid processing during 2007 which have the following implications -
- It is important to understand the difference between charities that are ‘Trusts’ and those that are ‘Companies’ (the latter including many churches).
- When compiling a claim, be aware of the relevant ‘accounting period’ that applies to your charity, church or CASC
- Be aware of the dates of changes of tax rates, as this affects the validity of claim documents
- Ensure that only donations received in the relevant period are included in each R68 schedule
- Make sure you have the right division of your claim into accounting periods and, where relevant, tax years.
GATS Gift Aid Tax Software v 3.7 has been enhanced to take account of these changes. Cleaford Services Ltd provide their customers with a guidance note giving more information on these points, and how the changes affect the day to day use of GATS. Our guidance note can be downloaded here. Please note that this is not an official HMRC document. Help is available from HMRC on general Gift Aid questions (although obviously not on the implementation of GATS) here
Later news - 6th April 2008
For donations on or after 6th April 2008 it will be necessary to submit an R68 schedule based on the new 20% tax rate. HMRC will then calculate and pay a ‘Transitional Relief’ amount based on a notional 2% tax rate, and this will be received with the standard repayment. We have produced GATS v3.8 to include the Transitional Relief function, so existing customers are advised not to enter any donations after 5th April 2008 until they have GATS 3.8 installed.
HMRC Notice BN52 Gift Aid: Transitional Relief is here
Latest news - September 2008
HMRC have written to charities under the heading ‘Important changes to your Gift Aid claims’. The letter includes the following-
We have amended our claim forms to take into account the tax rate change [20% from 6th April 2008]. We have also produced a new Gift Aid schedule for you to list donations made on or after 6 April 2008....To help you get your claim right and ensure we can identify which payments will attract TR [Transitional Relief payable from 6th April 2008], please use only the latest versions of the R68 and new schedules..
GATS v 3.9 produces the new schedules.
Email us here if you want to know more.
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