# Changes to GASDS and tax rules take effect this month

- Link: https://fundraising.co.uk/2017/04/20/changes-gasds-tax-rules-take-effect-month/
- Published: 2017-04-20T10:00:43+01:00
- Author: Melanie May

**Changes in rules for the Gift Aid Small Donations Scheme (GASDS) have come into
force with the start of the new tax year.**

The [changes to GASDS](https://www.gov.uk/government/publications/charities-detailed-guidance-notes/chapter-8-the-gift-aid-small-donations-scheme)
came into effect at the beginning of April, with revised guidance from the Government.

The Act changes the Gift Aid Small Donations Scheme by removing the two-year eligibility
rule and the Gift Aid history requirement to allow more smaller and newer charities
to benefit sooner, and allowing contactless donations to be eligible.

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Charities, and groups of charities, may now claim under the main allowance or under
the community buildings allowance, but not both, while changes to the community 
buildings rules to allow donations received outside of the community building but
within the same local authority area to qualify mean more charities will be able
to benefit from the work they carry out in their local communities.

HMRC’s [entry level guidance note ](https://www.gov.uk/claim-gift-aid/small-donations-scheme)
and [detailed guidance note](https://www.gov.uk/government/publications/charities-detailed-guidance-notes)
have also been updated, following consultation with sector bodies including the 
Charity Tax Group.

[New rules relating to Gift Aid and intermediaries](http://www.legislation.gov.uk/uksi/2016/1195/pdfs/uksi_20161195_en.pdf)
also take effect from this month, while other changes with the potential to affect
charities include new off-payroll working rule for public sector employers, the 
start of the Apprenticeship Levy, and an enlargement of the [Social Investment Tax Relief](https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/586236/Income_tax_relief_for_social_investments.pdf).

[The Charity Tax Group](https://www.charitytaxgroup.org.uk/) welcomed the GASDS 
changes but called for the Government to continue to review the effectiveness of
the changes, and to consider further reforms.

CTG chairman, John Hemming, said:

> “In respect of the Gift Aid Small Donations Scheme (GASDS) the relaxation of the
> eligibility requirements, clarification of the community buildings rules and extension
> to contactless payments are all welcome and we hope that these changes will help
> to widen accessibility to the Scheme, particularly among smaller charities. However,
> we encourage the Government to continue to review the effectiveness of these changes,
> and consider further reforms, if there is no significant additional take-up.
> “
> The other tax changes do little to address concerns about the overall complexity
> of the tax system for charities and there is a real risk that new burdens such
> as the Apprenticeship Levy will begin to undermine the charities’ operational 
> effectiveness.”

 * **[Multiple small donations submitted together to remain eligible for GASDS](https://fundraising.co.uk/2021/03/09/multiple-small-donations-submitted-together-to-remain-eligible-for-gasds/)(
   9 March 2021)
 * **[Gift Aid Small Donations Scheme: securing £2,000 from HMRC](https://fundraising.co.uk/2020/04/03/gift-aid-small-donations-scheme-securing-2000-from-hmrc/)(
   3 April 2020)**