Charity Tax Group sets up working group to discuss the future of Gift Aid

25 Jun 2019 News

The Charity Tax Group has set up a working group of charities interested in reviewing Gift Aid from a “practical and strategic perspective”.

HM Revenue & Customs has tasked CTG with producing a paper on the issue to inform its own Gift Aid working group.

CTG’s “subgroup” will focus on "the future" of Gift Aid and seek feedback from a wide range of stakeholders including charities, donors, HMRC, software developers, payment specialists and intermediaries.

It held its first meeting last month, with representatives from charities including Age UK, Oxfam, and Save the Children, and plans to hold a number of others in the next few months.

The subgroup will aim to submit an interim paper, outlining the conclusions of its discussion, to HMRC by the end of 2019.

It plans to discuss whether Gift Aid can continue in its current form and remain fit for purpose, or whether more radical changes are needed.

The subgroup will debate both how to help reduce the estimated £180m of ineligible Gift Aid claims made each year as well as unlocking the £560m of Gift Aid left unclaimed.

It will look at the effect technological developments such as blockchain and new payment types could have on Gift Aid.

The group will also discuss the principles behind Gift Aid and the risks to charities of outsourcing its processing.

Speaking to Civil Society News, CTG's policy adviser Chris Lane said HMRC had not committed to making any changes on the basis of the subgroup's report but said the regulator was open to hearing suggestions.

He said there could be some overlap with NCVO's Charity Tax Commission, which is due to publish its recommendations shortly, but that CTG's subgroup would be more focused on how Gift Aid specifically is "future-proofed".

CTG has asked any charities interested in being involved in the working group to contact [email protected].

Civil Society Media's Charity Finance Week takes place in October and this year the theme is Accounts and Accountability. Find out more about the events taking place. 

 

 

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