HMRC have published updated guidance for charities which includes a helpsheet on the Gift Aid Small Donations Scheme (GASDS). The guidance incorporates all recent changes in this area.

By way of reminder, the GASDS allows eligible charities and Community Amateur Sports Clubs (CASC) to claim a Gift Aid style top-up payment of up to £1,250 on small cash donations they receive in the UK each year without needing a Gift Aid declaration from the donor. Only small cash donations received on or after 6 April 2013 can qualify under this scheme.

The existing Gift Aid scheme requires a Gift Aid declaration from the donor. However, as it can be difficult to get declarations for small cash donations, such as those from street collections, declarations are not needed under the GASDS.

To use the scheme a charity or CASC must:

• be recognised by HMRC as a charity for tax purposes or be registered with HMRC as a CASC
• have existed for at least two complete tax years (6 April – 5 April)
• have made successful Gift Aid claims in two of the last four tax years, and at least every other year
• not have incurred a penalty on Gift Aid or GASDS claims in the current or previous tax year.