Gift Aid letters for proceeds under £20 to be written three yearly

From next year, Gift Aid letters will only need writing once every three years where proceeds are less than £20 per year, it was announced in this week’s Budget. Currently charities must write to donors of Gift Aided second-hand goods every year to tell them of the proceeds resulting from their donation, regardless of the size of the proceeds. The Charity Retail Association and the Charity Tax Group had lobbied in a year-campaign to change this, and in this week’s Budget the Chancellor accepted that Gift Aid letters need only be written every three years, provided proceeds are less than £20 per year. Charity Retail Association Chief Executive Robin Osterley said: “Although this may seem like one of the smaller and less dramatic announcements of the Budget, the impact it will have on charities is actually very substantial, saving hundreds of thousands of pounds per year across the charity retail sector, and relieving charities of a considerable administrative burden. We are very pleased that our lobbying efforts, together with our partners the Charity Tax Group, have brought about this very beneficial change.” Confirmation of the change can be found at section 3.16 of the Budget Red Book. It will be implemented next year, with details on procedures and methods to follow.

from UK Fundraising https://ift.tt/2P0xNLM