Gift Aid

poppystar

Over the course of a year I donate items to charity shops, do raffles and make small donations to a variety of charities. I’ve signed up for gift aid with most of them but only one, Oxfam, sends a statement showing the total amount and the gift aid for the year. This has not been anything that has bothered me as I pay enough tax to cover it each year. However, if interest rates continue as at present I may need to fill in a self assessment tax return and even possibly creep over into higher rate tax next year. I wanted to set up my paperwork for this and so looked at the self assessment form and noticed there was a box for gift aid. What evidence if any do HMRC require for this? Are they not told the amounts or able to see the amounts from the returns of the charities when they claim? Is it sufficient for me to keep a running total of what I have donated - but clearly this won’t include the amount they have achieved from the sake of goods donated which is an unknown quantity.  Or should I be approaching the charities and asking them to notify me regularly? 

How do others go about this? Is there some important reason why HMRC want this information and what happens if my records don’t tally with the amount of gift aid they can see has been claimed because I don’t have the information? Thanks

Dazed_and_C0nfused

poppystar said:

Over the course of a year I donate items to charity shops, do raffles and make small donations to a variety of charities. I’ve signed up for gift aid with most of them but only one, Oxfam, sends a statement showing the total amount and the gift aid for the year. This has not been anything that has bothered me as I pay enough tax to cover it each year. However, if interest rates continue as at present I may need to fill in a self assessment tax return and even possibly creep over into higher rate tax next year. I wanted to set up my paperwork for this and so looked at the self assessment form and noticed there was a box for gift aid. What evidence if any do HMRC require for this? Are they not told the amounts or able to see the amounts from the returns of the charities when they claim? Is it sufficient for me to keep a running total of what I have donated - but clearly this won’t include the amount they have achieved from the sake of goods donated which is an unknown quantity.  Or should I be approaching the charities and asking them to notify me regularly? 

How do others go about this? Is there some important reason why HMRC want this information and what happens if my records don’t tally with the amount of gift aid they can see has been claimed because I don’t have the information? Thanks

You don't need any evidence when completing a tax return, you are just entering a figure on a form.

However if HMRC decide to enquire (investigate) into your return then they may ask for details to substantiate your claim.

The gross amount of Gift Aid contributions increase your basic rate tax band so can save you some personal income tax in addition to the basic rate tax relief the charity claims.

I suspect keeping track of £10k of interest might be trickier than your Gift Aid donations however anything you have to prove the amounts claimed should be retained in case HMRC ask you for it.

I believe charities will notify you of the proceeds if you ask them and provide contact details at the point you donate goods for sale.

Worst case scenario is HMRC would disallow some or all of your claim and you could be charged a penalty on top of any tax and late payment interest that would be due.  I think it's safe to say you wouldn't be jailed for that type of discrepancy.

sheramber

You cannot claim gift aid for raffle tickets

https://www.gov.uk/government/publications/charities-detailed-guidance-notes/chapter-3-gift-aid

poppystar

sheramber said:

You cannot claim gift aid for raffle tickets

https://www.gov.uk/government/publications/charities-detailed-guidance-notes/chapter-3-gift-aid

Then why does the form I fill in when sending the payment for them confirm and say thank you for the gift aid? V confused now. 

poppystar

Dazed_and_C0nfused said:

poppystar said:

Over the course of a year I donate items to charity shops, do raffles and make small donations to a variety of charities. I’ve signed up for gift aid with most of them but only one, Oxfam, sends a statement showing the total amount and the gift aid for the year. This has not been anything that has bothered me as I pay enough tax to cover it each year. However, if interest rates continue as at present I may need to fill in a self assessment tax return and even possibly creep over into higher rate tax next year. I wanted to set up my paperwork for this and so looked at the self assessment form and noticed there was a box for gift aid. What evidence if any do HMRC require for this? Are they not told the amounts or able to see the amounts from the returns of the charities when they claim? Is it sufficient for me to keep a running total of what I have donated - but clearly this won’t include the amount they have achieved from the sake of goods donated which is an unknown quantity.  Or should I be approaching the charities and asking them to notify me regularly? 

How do others go about this? Is there some important reason why HMRC want this information and what happens if my records don’t tally with the amount of gift aid they can see has been claimed because I don’t have the information? Thanks

You don't need any evidence when completing a tax return, you are just entering a figure on a form.

However if HMRC decide to enquire (investigate) into your return then they may ask for details to substantiate your claim.

The gross amount of Gift Aid contributions increase your basic rate tax band so can save you some personal income tax in addition to the basic rate tax relief the charity claims.

I suspect keeping track of £10k of interest might be trickier than your Gift Aid donations however anything you have to prove the amounts claimed should be retained in case HMRC ask you for it.

I believe charities will notify you of the proceeds if you ask them and provide contact details at the point you donate goods for sale.

Worst case scenario is HMRC would disallow some or all of your claim and you could be charged a penalty on top of any tax and late payment interest that would be due.  I think it's safe to say you wouldn't be jailed for that type of discrepancy.

Thanks that makes more sense now. I can see why they want the information if it is effectively being used as a claim to increasing the tax band. I’ll contact the main charities to see if they will provide the info and from what you’re saying if I’m understating the gift aid there wouldn’t be a problem only if I was overstating it and therefore claiming more allowance than due. Thanks.

sheramber

poppystar said:

sheramber said:

You cannot claim gift aid for raffle tickets

https://www.gov.uk/government/publications/charities-detailed-guidance-notes/chapter-3-gift-aid

Then why does the form I fill in when sending the payment for them confirm and say thank you for the gift aid? V confused now. 

Ask them why

Jeremy535897

sheramber said:

poppystar said:

sheramber said:

You cannot claim gift aid for raffle tickets

https://www.gov.uk/government/publications/charities-detailed-guidance-notes/chapter-3-gift-aid

Then why does the form I fill in when sending the payment for them confirm and say thank you for the gift aid? V confused now. 

Ask them why

One possibility is that you are asked to make a donation, and also buy raffle tickets. The donation element would qualify. Read what they say about gift aid carefully.