Government to reassess the Gift Aid Small Donations Scheme in 2016

The scheme will be a boost to local organisations and will raise £130m for charities in 2017/18, says Treasury minister Sajid Javid

Sajid Javid
Sajid Javid

The government will review the progress of the Gift Aid Small Donations Scheme in three years’ time to ensure it is working properly, according to Sajid Javid, the Economic Secretary to the Treasury.

Speaking at the offices of the Alzheimer’s Society in London at an event to mark the launch of Charities Online, the new system for making Gift Aid claims with HM Revenue & Customs, Javid said that he was "very happy" with how the scheme had turned out and that it would be a particular boost for local charities.

He said the government estimated it would raise £130m for charities in 2017/18.

The scheme, introduced earlier this year in the Small Charitable Donations Act, allows charities to claim Gift Aid-like relief on up to £5,000 a year on small cash donations, without the usual paperwork.

Javid said the review process would include an assessment of the amount of money charities could claim under the scheme.

"We’ll look at it in three years to make sure it’s working properly," he said. "When we review it, we will look at all aspects, including the limits."

Javid also praised the new Charities Online service, which was introduced quickly partly to ensure that charities could claim under the GASDS.

He said the new system was quicker and easier to use and had less potential for errors.

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