Gift Aid Tax Repayment Claim

Gift Aid Tax Repayment Claim

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This question relates to a charity which is considered by HMRC to be a company.

A charity’s year end does not always coincide with the end of the fiscal year. In this case, which fiscal year(s) would a Gift Aid tax repayment claim apply?

Example:

Company X produces final accounts for the year ended 31 December 2010. These itemize Gift Aid Donations of £10,000. A claim for repayment of tax is made.

In this case would the claim be apportioned between two fiscal years or attributed to one.

If it would be attributed to one fiscal year, which one would apply?

Replies (9)

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By Towards excellence
26th May 2011 10:43

To start off...

... until someone more knowledgeable comes in, I am working voluntarily for a charity that submitted its claim. It is unincorporated , but their year end is 30 June and they have made a claim ending 30 June 2010.

SA

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By donaldfleming
26th May 2011 13:40

Gift Aid Tax Repayment Claim

SA, thanks for taking the time to respond.

The answer I'm actually looking for is to the following question: if Company X submits a Gift Aid Tax claim for the period 1.1.10 - 31.12.10, what fiscal year(s) would the the claim be attributed to.

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By Ernest N Dever
26th May 2011 13:47

I thought...

... that whilst you made a claim for an accounting period, you entered the individual donations on the form separately and the appropriate amount of relief was effectively calculated per donation based on the fiscal year in which it fell?

I haven't actually done one myself, it's just what I've been told.  I thought HMRC supply an "interactive" PDF form?

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By WhichTyler
26th May 2011 13:57

What he said

In the example you give, you would need to make two claims, one for donations received in the year to 5.4.10 and one for donations received in the 2010/11 year. The interactive form is an R68i and once you enter the accounting period, it will generate schedules for the relevant years.

 

 

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By donaldfleming
26th May 2011 14:05

Gift Aid Tax Repayment Claim

Thanks for your answer, Ernest.

I haven't actually made the claim yet. I plan to do so within the next few months.

What I'm trying to find out is whether the Revenue apportions a company's financial year between two fiscal years, or if it attributes the company's financial year to  a particular fiscal year, i.e. Company year end 31.12.10. Year end is in 10/11 fiscal year; therefore Gift Aid Tax Repayment claim is attributed to 10/11.

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By WhichTyler
26th May 2011 16:11

Why Wait?

Can I recommend getting the claim ready sooner rather than later?

It is free money, and only you know how urgently the charity needs it, but you may need to check details of donations back to Jan 2010, which are already 18 months old, and not getting any younger!

You must be pretty busy (or the charity pretty well off) if earning £2500 can wait that long...

 

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By donaldfleming
26th May 2011 17:40

Gift Aid Tax Repayment Claim

Thanks for your advice, WhichTyler. What you say makes sense.

 

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By Chris Smail
27th May 2011 08:53

You do not make a gift aid claim for the company's year!
Please read the advice on the HMRC site before posting here.

In brief a gift aid claim may only cover a fiscal year or part thereof.
Many charities with significant income from donations claim monthly or quarterly.
You should be making at least two claims for your own admin convenience 6/4--> 31/12 and 1/1 --> 5/4

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By Ernest N Dever
27th May 2011 10:16

"Please read the advice on the HMRC site before posting here"

Chris,

Do you mean this advice: http://www.hmrc.gov.uk/charities/gift_aid/reclaim.htm

Which then links to this advice: http://www.hmrc.gov.uk/charities/complete-form-r68i.htm, which is written on the basis that a claim is made for an accounting period, albeit effectively with separate schedules for the two periods you're referring to.

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