HMRC announced changes to how Gift Aid will be claimed in April 2013. Blackbaud is aware of the changes being made for Gift Aid the necessary changes were implemented in the release of Patch 9 for The Raiser's Edge version 7.92. We worked in conjunction with HMRC to build a direct connection into The Raiser's Edge. The existing version of The Raiser's Edge can be used to create the Excel-based submission, which is allowed for up to 1000 donations at one time.
For instructions on how to complete a Gift Aid Submission from The Raiser's Edge, see BB740842.
The changes being made to the Gift Aid scheme are:
- Direct submitting of Gift Aid claims, removing the need for an R68 form. This is known as “Charities Online” expected to begin 22nd April 2013
- The Gift Aid Small Donations Scheme, allowing small donations to get a top-up gift from the government without having to record a Gift Aid declaration.
Gift Aid Small Donations Scheme
A charity can claim the “Gift Aid” amount for a donation without a Gift Aid declaration. The scheme is designed around a collection plate at a place of worship, or similar small collections from small organisations. As there is no Gift Aid declaration, this is not a “Gift Aid” payment but a “Top-Up” payment.
Although the rules are yet to be finalised, there are some caveats that are expected:
As the scheme currently stands, the Top-Up payment claims would be made alongside other Gift Aid claims and Blackbaud software will be able support this process.
- The maximum donation per donor is £20.
- You can claim on a maximum of £5,000 in a financial year. That equates to a maximum £1,250 additional Top –Up revenue per year
- The charity must already have a Gift Aid claim history
- The donation must take place in a “Community Building” or similar
See http://www.hmrc.gov.uk/charities/gasds/index.htm for more information.
The Gift Aid process is changing in April this year, as HMRC have launched three formats to replace the R68i form which is currently used by charities to reclaim the basic income tax portion of a donor's gift. This is part of the government Digital by Default strategy. The three formats are:
- Claim Using External Software - HMRC want customers to move to having their “R68i” transmitted directly to HMRC from authorised fundraising software.
- Claim Using a Paper Form - For charities with very few donations, a manual process will be created to allow aup to 90 Gift Aid donations to be claimed on a paper form.
- Claim Online - A spreadsheet process has been created that will allow up to 1,000 donations to be claimed via an excel output. The Raiser’s Edge, Blackbaud CRM and eTapestry are set-up to allow this today.
For more information view the following link: http://www.hmrc.gov.uk/charities/online/index.htm
Also see http://www.hmrc.gov.uk/charities/online/transition.htm for Transitional Arrangements put in place by HMRC where they will continue to accept printed forms in the post, up until 30 September 2013.
This is a really exciting change that ultimately will make the R68 submitting easier for our customers. However, with the announcement yet to out to all charities, and testing on the new process not yet possible, it’s a tight timescale to make the change for both Blackbaud and our customers! Of course the Paper Form process will work for everyone, so here’s what Blackbaud are planning to do for Raiser’s Edge users:
“Claim Using External Software” We plan to implement this as a patch in version 7.92 of The Raiser’s Edge in time of the launch of the new scheme. Through this change, we plan to be able to send the Gift Aid submission directly to HMRC from The Raiser’s Edge. If you wish to be involved in the design of this, and being an early user testing the new system, please sign-up to our Discovery programme at http://www.blackbaud.com/discovery.
“Claim Online” – If you aren’t able to upgrade The Raiser’s Edge, or don’t have many donations per year, then you’ll be able to use Query in The Raiser’s Edge to create the spreadsheet required for the “Claim Online” process. We’ll publish some “how-to” steps in the run-up to the launch of the new processes.