Although the Payments Council recently decided not to withdraw the use of cheques in 2018 as originally planned, HM Revenue & Customs (HMRC) is reminding charities that it will continue to move to making Gift Aid repayments electronically, rather than by cheque or payable order.
HMRC originally made this announcement in April before the Payments Council’s change of direction.
HMRC says that it favours payments by BACS because it “will provide greater security for charities and HMRC by protecting against fraudsters”. It will also reduce the organisation’s administrative costs and result in charities receiving repayments from HMRC more quickly.
Indeed, if HMRC already holds bank details for a charity or Community Amateur Sports Club (CASC) it will now make any Gift Aid repayments automatically by BACS. Organisations that wish to receive electronic repayments should send their bank account details to HMRC on form ChV1.
Get free email updates
Keep up to date with fundraising news, ideas and inspiration with a weekly or daily email. [Privacy]