From 22 April 2013, charities and Community Amateur Sports Clubs (CASCs) can sign up to make repayment claims electronically. HMRC are introducing a new service, Charities Online, and this will make repayment claims faster and easier by filing online.
The current R68(i) print and post repayment form will be replaced by three options for making claims, although most charities will use the first of these.
The first available option is for those charities who normally file Gift Aid claims for fewer than 1,000 donors, and involves completing and attaching a spreadsheet to the online claim form. The second option is aimed at larger charities who file Gift Aid claims for more than 1,000 donors. Option three is a traditional paper-based claim for those without internet access.
HMRC have recently prepared guides to tell you what Charities Online means for your organisation and how to prepare for it.
The main benefit of Charities Online will be the faster service. It will also save postal costs, and the system will have built-in checks to warn of mistakes before a claim is submitted. You will also receive an on-screen confirmation reference number to tell you that your claim has been submitted successfully, together with a separate confirmation when the payment is made into your bank account.
Gift Aid Small Donations Scheme
From April 2013, the Charities Online system can also be used for repayment of tax on other income and claims for top-up payments under the new Gift Aid Small Donations Scheme (GASDS). This is the new scheme, announced last year, which will enable charities and CASCs to claim a top-up payment on cash donations of £20 or less without the need to collect Gift Aid declarations. There will be an annual limit on claims of small donations of up to £5,000. This will significantly reduce the administrative burden of claiming gift aid on small donations, and is ideal especially for small cash donations, such as collection boxes or bucket collections.
There will be ‘matching rule’ which will require charities and CASCs wishing to claim under GASDS to make Gift Aid claims in respect of other donations for which they have a Gift Aid declaration in the same tax year: every £10 of donations claimed under GASDS will need to be matched with £1 of donations claimed under Gift Aid in the same tax year.
Look out for further details from HMRC, which are expected in the middle of March.