In January 2023, HMRC updated its detailed guidance notes for charities (Chapter 3 – gift aid). The new guidance (para 3.4.4) applies where charitable donations are made through digital platforms such as JustGiving and GoFundMe. Typically, these deduct a processing fee from the amount paid on to the charity. The new guidance confirms that gift aid can be claimed on the gross amount of the donation, as opposed to the amount received net of fees.

This is a useful clarification which appears to be in line with the applicable legislation. The Income Tax Act 2007 describes a qualifying donation as “a gift made to a charity by an individual”. An administration fee charged by a digital platform, even if calculated as a proportion of the amount of the donation, would normally be a cost incurred by the charity rather than the donor. Such fees would not therefore reduce the amount that is a gift from the individual to the charity.