Gift Aid Recent Developments & Training MATT KELCHER, HEAD OF - - PowerPoint PPT Presentation

Gift Aid – Recent Developments & Training

MATT KELCHER, HEAD OF PUBLIC AFFAIRS & RESEARCH, C.R.A.

November 2015

• New guidance published after

consultation with CRA and the sector

• Certain key changes agreed …

Key changes… (1/6)

Tighten up of the wording on notifications to donors to reinforce consequences of changes in tax status

Key changes… (2/6)

Consistency of operation between Methods A and B

Key changes… (3/6)

Prohibit the operation of bonus schemes aimed specifically at improving Gift Aid income

Key changes… (4/6)

Introduce a requirement to send end of tax year letters to all donors notifying them of the proceeds raised and Gift Aid claimed and reminding them of the requirement to have paid sufficient UK Income or Capital Gains Tax

Key changes… (5/6)

Clarify audit requirements

Key changes… (6/6)

Agreement that training guidance would be developed in collaboration with HMRC and published as an industry-standard

Very latest amendment

“This process is exclusive to charity shops that operate a retail Gift Aid scheme to sell goods on behalf of donors. To maximise the amount that is raised, charities can sell valuable or collectable items donated to a shop at a commercial public auction or an

• nline auction website.”

Key wins for the CRA

• That charities are able to use email as the

platform to contact donors about Gift Claims made, rather than by post as HMRC urged

• That the system continues to be “opt out” with

the onus on donors to inform their chosen charity that they are no longer a tax payer

RGA Training Guidance - Working Party

• CRA
• HMRC
• A mix of charities in the sector
• BDO

RGA Training Guidance - Development

• CRA led working party set up in December 2015
• Knowledge and materials from all contacts
• Guidance collated by BDO
• Version 1 – Jan 2016
• Version 2 – March 2016
• Version 3 – May 2016
• Final version released June 2016

RGA Training Guidance - Features

• Modular – for different audiences

Shops: managers, staff & volunteers | Head Office & administration | Audit functions

• Standard and Method A & B
• Process flowcharts
• Templates
• Q&A tests
• Audit guidance

RGA Training Guidance - Templates

• Retail-specific Gift Aid declaration for donors
• A pro-forma Agency Agreement (in conjunction with Blake Morgan).

Many shops choose to amalgamate the Gift Aid Declaration and the Agency Agreement

• Template letters for the Standard Method/Method A/Method B
• In-Year Template letter for Gift Aid notifications for the first sale that

exceeds the 100 limit and subsequent sales: Method A

• In-Year Template letter for Gift Aid notifications for the first sale that

exceeds the 1000 limit and subsequent sales: Method B

RGA Training Guidance - Accessing

• Handbook free for CRA members both

charity and corporate.

• Charities who are not CRA members

may purchase a copy for £495, and non- charities may purchase a copy for £995.

• Email: mail@charityretail.org.uk

RGA Training Guidance - Benefits

• One stop shop for Retail Gift Aid training
• Engagement with the donor
• Gift Aid declaration
• Stock processing
• Communication
• Management and Monitoring
• Comprehensive reference guide with key important messages
• Knowledge testing
• Modular sections = flexibility
• Confidence to deliver content

RGA Training Guidance - Future

• A further section to cover Furniture &

Electrical operations

• Reviewed regularly