Following representations by CTG and others, HMRC announced a number of changes to the GASDS rules, effective from April 2017, including relaxation of the Gift Aid history eligibility requirement, simplification of the community buildings rules and extension of the scheme to contactless payments. Further to that, a 2018 policy paper can be viewed here.

Following a consultation meeting with members, CTG responded to HMRC’s Call for Evidence on the Gift Aid Small Donations Scheme (GASDS), highlighting its support for the Scheme, but suggesting a number of changes that would improve its administration, accessibility and take-up.

CTG’s response calls for:

• Renewed efforts (by both Government and sector bodies) to improve awareness of the Scheme, as well simpler more accessible guidance and claiming/recording processes for charities
• Relaxation of the Gift Aid history eligibility requirement, to improve take-up, particularly among smaller charities
• Review of the operation of the rules around community buildings and connected charities to assess whether they are operating effectively
• Consideration of extending the Scheme to modern equivalents to cash donations, including contactless payments, to ensure that the Scheme is future-proofed.

In response to a question in the Commons by Alan Brown MP (SNP) on when HMRC plans to respond to GASDS consultation, the Exchequer Secretary to the Treasury, Damian Hinds MP said:

“The consultation has now closed and HMRC are currently analysing the responses. They will publish a responses document before the summer recess and will continue to work closely with the charity sector”.

HMRC has also updated its detailed charity guidance to reflect the new £8,000 limit of small donations on which the Gift Aid Small Donations Scheme top-up can be claimed. This will come into effect from 6 April 2016.