Whilst COVID-19 appears not to have significantly slowed the repayment of Gift Aid claims, HMRC has identified some common errors made on claims that do cause processing delays. The main points to watch out for are:
- Data about the person (authorised official) submitting the claim is not correct:
- The person is unknown to HMRC or has changed their name (e.g. by marriage) and not informed HMRC of the change;
- The person has moved and not updated an address or the correspondence address has not been updated following a change of authorised official;
- HMRC has not been notified of a new agent or nominee.
Where changes to authorised officials have been made (now normally via the Government Gateway on form ChV1), confirmation letters sent by HMRC should be checked to ensure that details provided have been correctly recorded.
- Claiming for donations that are out of date – remember that different rules apply to GASDS as opposed to Gift Aid. The GASDS time limit is only two years to 5 April each year, as opposed to four years for Gift Aid (either accounting period or tax year). We recommend making claims under both schemes at least annually if not more frequently, especially at this time of possibly challenging cash flow.
- Entering a claim for GASDS which is larger than the maximum £8,000 property limit. It was not felt that charities were trying to defraud HMRC, but entering actual cash donations that exceed the £8,000 limit will delay claims.
- Claiming Gift Aid on limited company donations. This is not allowed.