Those CASC clubs that claim Gift Aid from HMRC should be aware new gift aid declaration forms for single and multiple donations came into use on 5th April.
While there have been some significant and welcome simplifications to the forms, there is also a new requirement that’s less positive. Clubs will need to update the declarations they now to reflect the new requirement and ensure that declarations they receive continue to be valid.
The new addition that may be an issue is that the model statement has been rearranged to try to improve the gift aid messaging and reduce the amount of text donors will need to read. The central part of the new model declaration now looks like this:
‘I am a UK taxpayer and understand that if I pay less Income Tax and/or Capital Gains Tax in the current tax year than the amount of Gift Aid claimed on all my donations it is my responsibility to pay any difference.’
This inclusion of a ‘tax to cover’ statement that confirms it is the donor’s responsibility to pay back any shortfall in their tax paid against the gift aid claimed and it is maintained that this may put off future donors.
This new requirement is reflected in the updated list of information that a declaration must include (although the principle of ‘tax to cover’ has always been an element of the gift aid system).
These new model declarations and requirements are effective immediately and any declarations made with old forms will be considered invalid by HMRC, and the gift aid claims rejected.
However, clubs will not be required to contact donors to update existing enduring declarations.
Further information on gift aid and the changes can be can be found by following this HMRC link.