{"id":654,"date":"2016-07-22T12:12:27","date_gmt":"2016-07-22T11:12:27","guid":{"rendered":"https:\/\/lancasterclements.co.uk\/?p=654"},"modified":"2016-06-27T15:14:53","modified_gmt":"2016-06-27T14:14:53","slug":"are-you-aware-of-the-changes-to-gift-aid","status":"publish","type":"post","link":"https:\/\/www.lancasterclements.co.uk\/are-you-aware-of-the-changes-to-gift-aid\/","title":{"rendered":"Are you aware of the changes to Gift Aid?"},"content":{"rendered":"

Are you aware of the changes to Gift Aid? <\/strong><\/h1>\n

The Gift Aid scheme is now 25 years old. In its first year charities benefitted with \u00a310 million of tax savings. In 2014\/15 the savings were worth nearly \u00a31.2 billion.<\/h3>\n

The tax savings arise because Gift Aid donations from individuals are deemed to be paid by those individuals net of basic rate income tax. The charity then claims the tax back from HMRC as it is exempt from tax on donations received (subject to the detailed rules for Gift Aid being satisfied).<\/p>\n

In addition, higher rate taxpayers can claim tax relief on their Gift Aid donations amounting to 25% of their donations. Additional rate taxpayers effectively receive 31.25% tax relief on their donations.<\/p>\n

Given the longevity of the scheme, amendments have been made to its conditions from time to time. In April 2016, the Gift Aid declaration underwent a change. The declaration is the means by which the taxpayer agrees that the donation comes within the scheme and allows the tax reliefs to flow through to the charity and the taxpayer.<\/p>\n

HMRC has 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.\u00a0<\/strong><\/p>\n

Action required by charities<\/strong><\/h3>\n

The new style declarations should have been in use from the 6 April 2016.However:<\/p>\n