HM Revenue & Customs publishes guidance on Gift Aid Small Donations Scheme

Document covers eligibility and claims, which can be made online from 22 April


HM Revenue & Customs has published new guidance that contains more information on the Gift Aid Small Donations Scheme.

The guidance includes a list of eligibility criteria to help charities discover whether they qualify for GASDS payments and a practical explanation of how to submit a claim.

Charities will be able to claim under GASDS on donations made from 6 April onwards. But claims will need to be made through HMRC’s new online platform, Charities Online, which does not go live until 22 April.

The scheme provides a Gift Aid-like relief on up to £5,000 of donations each year, even if those donations are made without the normal paperwork. In order to use the scheme, charities must also claim £1 in Gift Aid for every £10 donated under the scheme. Charities must also have claimed Gift Aid in two of the previous four years and have a good record with HMRC.

Chris Lane, policy officer at the Charity Tax Group, said: "This is helpful guidance, although it’s appeared quite late in the day, which is less helpful."

He said that HMRC had promised to publish more detailed guidance shortly, but that this had not yet been seen even in draft form by charity umbrella bodies.

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