The Chairman of the Charity Tax Group (CTG), has written to the Chancellor requesting immediate support for charities through the tax system during the COVID-19 pandemic.
The letter presents six practical proposals to simplify charities’ interaction with the tax system and to unlock important tax reliefs for charities at a time when cashflow is under serious strain. The Chancellor is asked to:
- Allow Gift Aid on donations arising from allowing charities to keep payments originally made for cancelled events/loans etc
- Provide urgent confirmation that Gift Aid can be claimed on donations received by charities through Facebook (and similar operators) to release millions of pounds
- Confirm simplified audit processes for Gift Aid on text/SMS donations at a time when their use may increase
- Confirm that no HMRC action will be taken to collect VAT on digital advertising by charities during the crisis
- Extend the Expanded Retail Discount to all charity properties to ensure 100% business rates relief for the year 2020/21
- Confirm flexibility over tax deadlines and tax administration
In support of the charity sector, CTG has published a coronavirus information hub and will continue to link to relevant Government guidance and business support packages.