Gift Aid Services

Claiming for gifts in kind

• Currently only monetary gifts are eligible for Gift Aid, so tax cannot be recovered for gifts in kind. Many charities depend on such gifts regularly coming their way to sustain their operations. Examples might be stationery and other supplies, equipment, goods for resale and so on. HMR&C has suggested a partial solution which, although it’s bureaucratic, can work. The donor ‘sells’ the item to the charity, or makes out an expense claim, whichever is appropriate. Money passes to the donor and this is shown as an expense in the books. The donor then makes a gift of that money to the charity which is also recorded in the books. This gift is then gift aided. This is a bit complicated, but it works. Wait ‘till you get to the next bit!

• Goods for resale: The donor passes the goods to the charity which then sells the item as the donor’s agent. The sale price is duly recorded in the books and the donor is then advised of the sale proceeds and asked whether the sum realised is still to be donated as a voluntary gift. If the donation proceeds it can then be gift aided in the usual way.
  
  And we have a government committed to removing red tape! Almost everyone in the UK pays tax of one sort or another so a bit of trust wouldn’t come amiss.