Gift Aid, declaring

[AleisterCrowley]

I'm finalising my return for 16/17
I'm normally pretty good with record-keeping, but there are several occasions where I've ticked a Gift Aid box for charitable donation (financial or goods) without any records
I've got one statement from CRUK showing value of donated goods sold, and gift aid claimed
I also do a regular AgeUK lottery by standing order (c £100 pa)
So....

-Will I get in trouble if I've Gift Aided donations which are not declared on return ?
-Is the benefit of declaring them solely to me ?
-Does the Age UK lottery count, as I get something in return (a lottery entry)?

thanks

[Watis]

I'm finalising my return for 16/17
I'm normally pretty good with record-keeping, but there are several occasions where I've ticked a Gift Aid box for charitable donation (financial or goods) without any records
I've got one statement from CRUK showing value of donated goods sold, and gift aid claimed
I also do a regular AgeUK lottery by standing order (c £100 pa)
So....

-Will I get in trouble if I've Gift Aided donations which are not declared on return ?
-Is the benefit of declaring them solely to me ?
-Does the Age UK lottery count, as I get something in return (a lottery entry)?

thanks

Will I get in trouble if I've Gift Aided donations which are not declared on return ?

I wouldn't have thought so. I doubt HMRC have a division whose role is to match all Gift Aid donations on tax returns to the charity's claim for Gift Aid reclaims?

Is the benefit of declaring them solely to me ?

Yes - you will get tax relief on the difference between basic and higher rate tax if you're a higher rate taxpayer. Therefore, to include donations not actually made would be tax evasion.

Does the Age UK lottery count, as I get something in return (a lottery entry)?

Don't know - but suspect not. It's not a donation if there's the prospect of a win.

Watis

[Dod101]

I do not think you will get into any trouble. I have the same problem most years.

Note though that for the donations made in kind to CRUK where you have presumably given them a Gift Aid Declaration, they are turning them into cash and claiming the basic rate of tax on that cash and where you give a cash donation with a Gift Aid tick, the benefit of the basic rate of tax goes to the charity/ If you are a higher rate tax payer you will also get tax relief for the higher rate if you claim it. If you are not a higher rate payer, then the sole beneficiary is the charity.

Dod

[AleisterCrowley]

Thanks for responses, should have mentioned i'm a Higher Rate taxpayer (just...)

[PinkDalek]

Thanks for responses, should have mentioned i'm a Higher Rate taxpayer (just...)

You can pull in (claim) Gift Aided payments made in 2017-18 (back to 2016-17) up to the date of the current return.

In more detail from the 2016-17 Tax Return Notes:

Box 8 Gift Aid payments made after 5 April 2017 but to be treated as if made in the year to 5 April 2017 If you want us to treat Gift Aid payments you made between 6 April 2017 and the date you send us your tax return, as if you made them in the year to 5 April 2017, put the amount in box 8. For example, if you know you will not be paying higher rate tax this year but you did in the year to 5 April 2017.


Source https://www.gov.uk/government/uploads/s ... 0-2017.pdf

[AleisterCrowley]

I am, unfortunately (??), stuck in HRT bracket for the foreseeable...but useful to know

[PinkDalek]

I am, unfortunately (??), stuck in HRT bracket for the foreseeable...but useful to know

Yes but claiming the Gift Aid relief early may benefit in a small way by expanding your basic rate band sooner rather than later. It depends on the amount of the "just" in your earlier post, as against the amount of the Gift Aided payments concerned. If you get my drift.

[AleisterCrowley]

Ah yes, see what you mean.
cheers

[DrBunsenHoneydew]

-Does the Age UK lottery count, as I get something in return (a lottery entry)?[/list]

Definitely not. Chapter 3 of the Tax Guide for Charities from https://www.gov.uk/government/publications/charities-detailed-guidance-notes

3.4.5 Payments to a charity in return for services, rights or goods aren’t gifts to charity and so aren’t eligible for the Gift Aid Scheme. For example, the following can’t come within the Gift Aid Scheme:

payment of school fees for a specific person
payment to purchase books, jumble sale items, food
payment for admission to events (jumble sales, concerts)
payment for raffle or lottery tickets (including 100 clubs) - the payment to purchase a raffle ticket from a charity isn’t a gift but a payment for the right to enter the raffle - it doesn’t matter that the chance or expectation of winning a prize is small or that the prize is of little value

[AleisterCrowley]

Thanks, one less to 'worry' about!

[melonfool]

I've almost never bothered to declare mine - until his year as I am teetering on the edge of the HR tax band and trying to avoid it. I have made £240 of charity donations.

Do people think I can include £30 of goods purchased in Sainsbury (I have the receipt) and donated to the Food Bank?

ta

Mel

[pochisoldi]

I've almost never bothered to declare mine - until his year as I am teetering on the edge of the HR tax band and trying to avoid it. I have made £240 of charity donations.

Do people think I can include £30 of goods purchased in Sainsbury (I have the receipt) and donated to the Food Bank?

ta

Mel

It appears not: https://www.gov.uk/government/publicati ... f-donation

3.4.4 A donation must be a payment of a sum of money. A donation can’t be made in kind, by loan waiver or by debt/loan conversion.

and

3.42.1 Gift Aid applies only to gifts of money by an individual. So, if a person simply donates goods to a charity, Gift Aid doesn’t apply. Charities can’t claim Gift Aid on donations of any physical items, such as clothes or books, only on donations of money.

3.42.2 However, in certain situations, Gift Aid can be claimed by charities or CASCs on the income from the sale of supporters’ goods....

PochiSoldi

[melonfool]

Thank you - I'll take it off the total.

I'll just donate money in future, they can probably buy more with it than I can anyway.



Mel

[AleisterCrowley]

3.42.1 Gift Aid applies only to gifts of money by an individual. So, if a person simply donates goods to a charity, Gift Aid doesn’t apply. Charities can’t claim Gift Aid on donations of any physical items, such as clothes or books, only on donations of money.

3.42.2 However, in certain situations, Gift Aid can be claimed by charities or CASCs on the income from the sale of supporters’ goods....

It's all a bit confusing, as I got a statement from CRUK based on sale of donated goods rather than a cash donation. Skim reading 3.42.2 onward it looks like the charity has to sell the goods on your behalf acting as an agent, rather than taking ownership immediately. You agree that they keep the proceeds, and they send a statement showing amount raised minus commission. They have to be able to link the goods to you.

[melonfool]

Yes, Age UK do that too. You get a unique code, which matches codes on a sheet of sticky bar codes, they then stick the barcodes on the goods you take in and it produces a statement which they send you I think after 6m.

I've had it twice. They do it for Gift Aid reasons so it must have been designed for that and presumably tested. I'm def adding that to my GA claim for the current tax year. I have the letter.

Mel

[Cookie]

I have read entry to zoos also as they are a charity and ask for gift aid on admission fee