Charity should pay for gift aid errors

HMRC have drawn up a new gift aid declaration for one-off donations which charities and community amateur sports clubs must begin using by April 2016.

The revised wording warns individuals that if they pay less tax in a year than the amount of gift aid claimed on all of their donations it is their responsibility to pay the difference.

Charity Tax Group chairman John Hemming welcomed the shorter declaration saying it should help to ensure that gift aid is easier to understand for donors and maximise take-up by those eligible for the scheme.

But he added: “More needs to be done to promote awareness of this change to ensure that charities are compliant with the new declaration and do not face the prospect of invalid claims.”

Anthony Thomas chairman of the Low Incomes Tax Reform Group was concerned that placing...