HMRC publishes guidance on retail Gift Aid
Howard Lake | 11 May 2013 | News
HMRC has published guidelines on the new processes for Gift Aid on items donated for sale at charity shops.
The retail Gift Aid guidelines detail three methods that charities can use – the Standard Method (which has been available since 2006 but which has now been updated), and Methods A and B, which came into effect from 5 April 2013.
Which method a charity chooses will depend on how it operates its shops, namely whether it operates them directly as the charity, or whether a trading subsidiary operates them.
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The Charity Retail Association welcomed the clarification that the guidelines offered.
Wendy Mitchell, Head of Policy & Public Affairs at the Association, said: “For many charities, this change will significantly reduce the cost and bureaucracy of unnecessary letter-writing to donors and is a welcome development".
She added that the CRA had produced for its members an information pack which listed frequently asked questions, and provided some sample agency agreements.
Mitchell concluded: "We would like to thank HMRC for working with the Charity Retail Association and its members to arrive at this positive result for charity shops and we will work with them, if necessary, on refining the published ./guidance in the coming months.”
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About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.