Charities and tax relief

Is your charity making the most of your tax status and could the tax system work better for you? Two points of note this month:

 

  • Charities are missing out on £560m of Gift Aid every year due to a lack of awareness about how the scheme works, research from HM Revenue & Customs has found. Third Sector magazine covers the story. If you need a refresher read HMRC’s guide on Gift Aid for charities including the Gift Aid Small Donations Scheme whereby even if a donor hasn’t made a declaration, you may still be able to claim on cash donations of £20 or less.

 

 

More broadly, we have launched a call for evidence for our Charity Tax Commission. The commission is the first systematic look at charity tax reliefs in over 20 years and seeks to identify ways to improve the efficiency and efficacy of the current system. We’re keen to hear the experience of smaller charities in particular.