Gift Aid and intermediaries: new processes

New processes being introduced by HMRC will make it easier for individuals to give to charities through digital channels. Currently a donor has to complete a Gift Aid declaration (GAD) each time they give to a new charity through an intermediary. This has resulted in restrictions on the take up of Gift Aid when donating through digital channels such as SMS.

From 6 April 2017 new rules will allow a donor to give permission to an intermediary to create GADs on their behalf for all subsequent donations made in that tax year.

There are new penalties for intermediaries that breach their obligations. The obligations include keeping records of:

  • the donor’s authorisation allowing them to complete declarations on the donor’s behalf
  • the date on which the Gift Aid regime was explained to the donor
  • cancellation of any of the donor’s authorisations
  • the annual statement. An annual statement must be sent to donors who use the new process.

These changes could increase the number of Gift Aid donations available for your charity. More details on this policy paper can be found: Gift Aid and intermediaries