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HMRC have 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
Latest 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 any 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
Email us here if you want to know more.
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