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Gift aid provision - need advice on how to deal with it when it didn't come in the following year but still needs to be included in the accts

Dealing with a provision in the accts

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I have been asked to compile the annual accounts for a charity. Last year a gift aid provision was made but the funds never came into the bank due to various problems (new treasurer and HMRC not receiving the documents). Therefore the amount is still due to the charity.

However when I prepare the report for the annual accounts, the total charity funds to be carried over is out by this amount. If I deduct the gift aid amount it tallys. 

Can anyone please advise me on how I should treat this.  Do I reverse it and then make another provision? A bit confused so would really value some help.

Thanks

Replies (3)

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By Duggimon
07th Jul 2016 11:18

So in the previous year there was a provision made, something along the lines of debit Gift Aid debtor, credit Gift Aid income, yes?

Then this year you bring forward and the debtor is still there but the gift aid wasn't received so the debtor still stands. With no movement though why is there a difference coming up? Or is the difference a result of reversing the debtor and not re-instating it?

It's hard to tell what the problem is without more information, perhaps a rundown of the relevant figures from last year and this year showing where the difference is coming in would let us answer better.

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RLI
By lionofludesch
07th Jul 2016 11:28

"However when I prepare the report for the annual accounts, the total charity funds to be carried over is out by this amount. If I deduct the gift aid amount it tallys. "

When you prepare the report it is out ?

If I deduct gift aid it tallies ? Deduct from what ?

Come come, you need to explain the problem much more clearly than that.

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Hallerud at Easter
By DJKL
07th Jul 2016 11:52

And the key questions are, will the gift aid tax relief ever be received, can HMRC still be satisfied, does the charity hold the required documents to send to HMRC?

If yes, bring forward debtor, if not, write off to I & E.

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