This puts a slightly different slant on it, but if the attendees all made large donations, you'd need to be sure they met the benefit rules - the item they received must be valued at less than 25% of the donation. Also they'd each need to complete a Gift Aid declaration themselves. If you are relying on the small donations scheme (GASDS), you would be declaring that no one paid more than £30. In both cases, the transaction is between the attendee and the charity, not the organiser.
The consequences of getting it wrong? HMRC can go back to the "donor" and get them to pay back the value of the Gift Aid claimed. The charity would be hurt more. If this donation makes up, say, 50% of the total GA claimed and is found to be ineligible, HMRC will deduct 50% of all future claims on the basis that the charity has inadequate processes in place to prevent this happening.
Hopefully the charity would have been aware of what this kind lady was trying to do and simply ignored the tick box.
If it was advertised as “craft sale in aid of a registered charity” then there was no intention that the lady was trading to make personal gain so the money was never hers to donate, therefore not gift aidable.
I can’t see anything in the original post to suggest that the lady herself made and donated all of the goods and it seems unlikely. If she did, I would agree with your statement, but was it so?
That’s good to hear for those like me who signed up for the trial (last December), spent many hours on the phone to HMRC and IT technicians to resolve issues with browser settings and screen resolution (because the original screens overfilled the page and had no scroll bars), spoke with bewildered HMRC staff who had cancelled DD mandates without understanding their own software, completed endless feedback forms and took part in webinars. So it’s all working fine now? Let’s hope that you can gain from our pain, but please don’t assume we were too stupid to follow instructions or just making a fuss.
I've had exactly this situation, not resolved and HMRC have said they have no idea what's happening. Two quarterly MTD returns so far, both with DD's supposedly in place, both failed, both times paid by bank transfer.
Had DD in place for years, signed up for MTD, HMRC said good to go, submitted return, DD failed, bank said HMRC cancelled, HMRC said “no, not us”.
2nd return, bank said HMRC set up DD with new reference, rang to check, HMRC said “no, not us”, cancelled DD that HMRC “didn’t set up”, paid by bank transfer, week later got an email from HMRC saying the DD (of which they had “no record”) was rejected! Who knows?
My answers
This puts a slightly different slant on it, but if the attendees all made large donations, you'd need to be sure they met the benefit rules - the item they received must be valued at less than 25% of the donation. Also they'd each need to complete a Gift Aid declaration themselves. If you are relying on the small donations scheme (GASDS), you would be declaring that no one paid more than £30. In both cases, the transaction is between the attendee and the charity, not the organiser.
The consequences of getting it wrong? HMRC can go back to the "donor" and get them to pay back the value of the Gift Aid claimed. The charity would be hurt more. If this donation makes up, say, 50% of the total GA claimed and is found to be ineligible, HMRC will deduct 50% of all future claims on the basis that the charity has inadequate processes in place to prevent this happening.
Hopefully the charity would have been aware of what this kind lady was trying to do and simply ignored the tick box.
If it was advertised as “craft sale in aid of a registered charity” then there was no intention that the lady was trading to make personal gain so the money was never hers to donate, therefore not gift aidable.
I can’t see anything in the original post to suggest that the lady herself made and donated all of the goods and it seems unlikely. If she did, I would agree with your statement, but was it so?
That’s good to hear for those like me who signed up for the trial (last December), spent many hours on the phone to HMRC and IT technicians to resolve issues with browser settings and screen resolution (because the original screens overfilled the page and had no scroll bars), spoke with bewildered HMRC staff who had cancelled DD mandates without understanding their own software, completed endless feedback forms and took part in webinars. So it’s all working fine now? Let’s hope that you can gain from our pain, but please don’t assume we were too stupid to follow instructions or just making a fuss.
MileIQ for mileage tracking, free if you have MS Office Business Premium subscription, otherwise a monthly fee.
It doesn’t matter. I only separate it to make it easier to reconcile the payroll for audit, but if you haven’t many staff just reduce Salaries.
I would create a new nominal code for SMP/SPP Recovered, near to the Wages accounts in the P&L, credit that and debit PAYE.
I've had exactly this situation, not resolved and HMRC have said they have no idea what's happening. Two quarterly MTD returns so far, both with DD's supposedly in place, both failed, both times paid by bank transfer.
Had DD in place for years, signed up for MTD, HMRC said good to go, submitted return, DD failed, bank said HMRC cancelled, HMRC said “no, not us”.
2nd return, bank said HMRC set up DD with new reference, rang to check, HMRC said “no, not us”, cancelled DD that HMRC “didn’t set up”, paid by bank transfer, week later got an email from HMRC saying the DD (of which they had “no record”) was rejected! Who knows?
Training and consultancy could easily lead to working with clients' live data, then it's not so clear cut.