My client, a higher rate taxpayer, held a successful craft sale in aid of a registered charity. She sent the proceeds of the sale to the charity by personal cheque and ticked the "gift aid" box.
I am unsure as to whether my client was correct to claim gift aid on her donation, as the money was derived from the sale of craft items, and was not direct donations.
If it turns out that the customers were asked for donations in exchange for craft items, would this be eligible for gift aid? Or not, as the money still represents a donation from a group of people rather than the individual taxpayer?
Any advice would be appreciated. My client is elderly, passionate about her chosen cause, and will be distressed if it turns out that she should not have gift aided the donation, so I want to advise her correctly and sensitively.