The recent budget has not brought many changes to Gift Aid that was not already known...however, here's a round up of the more important changes:

A new "inteligent R68 gift aid claim form (R68i)

Although no details of the exact nature of the form have been released, it is likely this form maybe completed over the internet and submitted via HMRC website.  The form will automatically calculate what repayments will be made.  However, if internet access is not available a paper version can be used.

Restrictions on frequency and amount to claim?

It is believed that the frequency of claiming gift aid will be restricted and the amounts that can be claimed in each claim limited.  Although still under consultation any changes may appear later on in 2010.

Reducing gift aid back claims

As already previously stated, the time limit for backdating gift aid claims has been reduced to 4 years (from the original 6 years) as from April 2010.

A new HMRC Charity Application form will be used from April 2010 for new charity organisations.

Charities must meet the following requirements:

• meet defination of a charity
• based in the RU, Norway or Icelan
• registered with their home country regulator
• be managed by fit and proper person

Highest rate of tax

The changes to the highest rate of tax @ 50% for earnings above £150,000 means that the individual is able to claim back the difference between the basic rate of tax (@ 20%) against the rate of tax they pay (e.g. 50%)

Spending money abroad

Charities must have done sufficient due diligence to demonstrate that any money spent abroad is for charitable purposes.  Any funds spent that do not meet those requirements, the charity will be taxed on it.  This comes into affect from 24th March 2010.

We will be monitoring any reforms to the processes involved with Gift Aid, in particular surrounding the new claim form.  As soon as any news is released we will post a new update.