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Query re Higher Rate Tax relief on gift aid donations to a charity shop
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JonLeach
Posted: 15 September 2010 14:03:20(UTC)
#11

Joined: 14/09/2010(UTC)
Posts: 2
Dear All,

Thanks for your responses -much appreciated and it shows the value of a forum like this.

Jack, you need to sign a gift aid form (at the charity shop) but that is assuming that the charity concerned operates such a scheme. For some shops, the paperwork may exceed the benefit but I have signed up with Hospicecare and BHF and am notified each time they put in a gift aid claim. It's also quite interesting to know the total price that the goods have sold for !

Thanks again

Jon

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jack jennings
Posted: 15 September 2010 14:19:13(UTC)
#12

Joined: 11/06/2008(UTC)
Posts: 4
many thanks Jon, appreciated. I donate to a local hospice charity so that looks promising .
Regards
jack
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Richard Curtis (Deputy Editor, Taxation)
Posted: 15 September 2010 16:35:03(UTC)
#13

Joined: 04/11/2008(UTC)
Posts: 4
This is an interesting question and I wrote an article on this very topic ('It's my bag'), which appeared in Taxation magazine, 7 January 2010 (on the internet at: www.lexisurl.com/giftaid). Provided that the right procedures are followed, then higher rate tax relief can be claimed on the sale proceeds of items, but it is important to remember that it is not the items that have been donated to the charity, rather the charity sells them on your behalf and then asks whether you would like to donate the sale proceeds. Referring to the reply by Samuel Gee at 4.59pm yesterday, there is thus a distinction between objects and monetary donations.
Remember also that your monetary donation is treated as being paid net of tax and there are some examples in my article that illustrate how the gift aid scheme works here.

Kind regards

Richard Curtis
Deputy Editor
Taxation
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John Howard Norfolk
Posted: 15 September 2010 17:06:32(UTC)
#14

Joined: 09/08/2010(UTC)
Posts: 26
I would like to return to the very first post on this forum question.

I said that such gifts come from the heart .

By all means let us help our favoured charity reclaim tax on our donations but the point at which I quibble is where we put such charities to additional work so that we may reclaim on our own tax return.

It just seems to be totally counter to the charitable giving philosophy if we adopt a balance sheet mindset. Such actions create additional hassle for hard pressed workers in the voluntary sector and simply add yet another item for our tax office to miscalculate!

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paul fisher
Posted: 15 September 2010 18:01:40(UTC)
#15

Joined: 15/09/2010(UTC)
Posts: 10
Oxfam will register you for gift aid and then give you numbered stickers to stick on all your gifts. They then keep track of what is sold and tell you at the end of the year
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Richard Curtis (Deputy Editor, Taxation)
Posted: 15 September 2010 21:15:44(UTC)
#16

Joined: 04/11/2008(UTC)
Posts: 4
I do agree with John Howard Norfolk's comments that charitable gifts 'come from the heart'. However, we should remember that it was the charities that initiated this scheme and in my researches for my article I found no indication that they were unhappy with its onerous nature. On the contrary, and as mentioned by Paul Fisher above, they have quite streamlined operations to track the items, their sale, and the amounts donated as a result.
In the article I mentioned that 'the first national charity to implement the retail gift aid scheme was Sue Ryder Care and that its use is responsible for additional gift aid repayment from HMRC of over £2 million per year'.
So if you are regularly donating items - whether you are a higher rate taxpayer or a basic rate taxpayer - the charity will benefit by your signing up to this method.
I would also point out that HMRC have published notes on the 'Retail Gift Aid' scheme at: http://www.hmrc.gov.uk/c...t_aid/rules/retail.htm.
Richard
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Aidvante Umair
Posted: 18 February 2025 07:30:17(UTC)
#17

Joined: 18/02/2025(UTC)
Posts: 1
hi there, i have written an article on gift aid claims, you can get every updated details on it. First, register with HMRC and obtain a Gift Aid reference number. Collect declarations from donors and submit claims online or via paper forms.
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