Gift Aid – Recent Developments & Training MATT KELCHER, HEAD OF PUBLIC AFFAIRS & RESEARCH, C.R.A.
November 2015 New guidance published after consultation with CRA and the sector Certain key changes agreed …
Key changes… (1/6) Tighten up of the wording on notifications to donors to reinforce consequences of changes in tax status
Key changes… (2/6) Consistency of operation between Methods A and B
Key changes… (3/6) Prohibit the operation of bonus schemes aimed specifically at improving Gift Aid income
Key changes… (4/6) Introduce a requirement to send end of tax year letters to all donors notifying them of the proceeds raised and Gift Aid claimed and reminding them of the requirement to have paid sufficient UK Income or Capital Gains Tax
Key changes… (5/6) Clarify audit requirements
Key changes… (6/6) Agreement that training guidance would be developed in collaboration with HMRC and published as an industry-standard
Very latest amendment “This process is exclusive to charity shops that operate a retail Gift Aid scheme to sell goods on behalf of donors. To maximise the amount that is raised, charities can sell valuable or collectable items donated to a shop at a commercial public auction or an online auction website.”
Key wins for the CRA That charities are able to use email as the platform to contact donors about Gift Claims made, rather than by post as HMRC urged That the system continues to be “opt out” with the onus on donors to inform their chosen charity that they are no longer a tax payer
RGA Training Guidance - Working Party CRA HMRC A mix of charities in the sector BDO
RGA Training Guidance - Development CRA led working party set up in December 2015 Knowledge and materials from all contacts Guidance collated by BDO Version 1 – Jan 2016 Version 2 – March 2016 Version 3 – May 2016 Final version released June 2016
RGA Training Guidance - Features Modular – for different audiences Shops: managers, staff & volunteers | Head Office & administration | Audit functions Standard and Method A & B Process flowcharts Templates Q&A tests Audit guidance
RGA Training Guidance - Templates Retail-specific Gift Aid declaration for donors A pro-forma Agency Agreement (in conjunction with Blake Morgan). Many shops choose to amalgamate the Gift Aid Declaration and the Agency Agreement Template letters for the Standard Method/Method A/Method B In-Year Template letter for Gift Aid notifications for the first sale that exceeds the 100 limit and subsequent sales: Method A In-Year Template letter for Gift Aid notifications for the first sale that exceeds the 1000 limit and subsequent sales: Method B
RGA Training Guidance - Accessing Handbook free for CRA members both charity and corporate. Charities who are not CRA members may purchase a copy for £495, and non- charities may purchase a copy for £995. Email: mail@charityretail.org.uk
RGA Training Guidance - Benefits One stop shop for Retail Gift Aid training ◦ Engagement with the donor ◦ Gift Aid declaration ◦ Stock processing ◦ Communication ◦ Management and Monitoring Comprehensive reference guide with key important messages Knowledge testing Modular sections = flexibility Confidence to deliver content
RGA Training Guidance - Future A further section to cover Furniture & Electrical operations Reviewed regularly
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