Share

Tax manager says ‘inflexible’ Charities Online could threaten income

Tax manager says ‘inflexible’ Charities Online could threaten income
News

Tax manager says ‘inflexible’ Charities Online could threaten income

Finance | Jonathan Last | 13 Feb 2013

The finance and taxes manager at Cancer Research UK has warned that the inflexibility of HMRC’s Charities Online platform could see some charities actually lose money.

Richard Bray, who is also vice chair of the Charity Tax Group, said that while it is true that claims will be paid faster, more securely and with the chance of rejection reduced, he cautioned that a standardised system could also mean some organisations lose out.

“Where HMRC may have previously allowed pragmatic solutions in agreeing a way a charity can submit claims - as often has been the case - this may no longer be available,” he said. “If so, charities may face either an increased cost of preparing claims or giving up on some of their gift aid income.”

Bray expressed further cynicism about why the new method of submitting gift aid claims, which is due to go live on 22 April, will require more information, such as every donor's postcode, to be supplied.

"This information is being requested for a reason," he said. "It will enable HMRC to much more easily and effectively target those donors who have not paid tax. It may, for example, be used to highlight charities that for whatever reason have not made their supporters properly aware of this need to pay tax."

He urged charities to not passively accept Charities Online but to instead prepare for it now by ensuring their gift aid procedures are fit for purpose and that the rules of the new regime are fully understood.

"I can see many charities losing gift aid income for reasons both fair and foul," he added.

Bray also claimed that HMRC itself is set to benefit the most from the new system, as it will reduce the manpower needed to process gift aid claims and therefore save the organisation money.

 

Yearbook


 

Charity Finance Yearbook

The Charity Finance Yearbook is the ultimate reference source for charity finance professionals. Providing updates, advice and trends on accounting and auditing, VAT and taxation, investment and banking, social investment and funding, legal matters, governance, impact, risk, IT and HR.

 

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Tags

Free eNews

Band Aid 30 raised £1m in first day

19 Nov 2014

Band Aid 30 became the fastest-selling single of 2014 when it was released yesterday, with 206,000 people...

Society lotteries deregulation could lead to less trust in charities, says NCVO

19 Nov 2014

Deregulation of society lotteries could impact public trust and confidence in charities, NCVO has told...

UK is joint-seventh overall in World Giving Index of 135 nations

18 Nov 2014

The UK and Ireland are the fourth most generous nations in terms of giving money to charity, the latest...

Cabinet Office in talks with Scottish government to pilot NCS

20 Nov 2014

The government is in talks with Scottish Parliament to launch a National Citizen Service pilot in Scotland,...

Two Dove Trust appeals struck out by Charity Tribunal

20 Nov 2014

Two of the Dove Trust appeals to the Charity Tribunal have been struck out after the judge ruled that...

OSCR launches new website

20 Nov 2014

The Office of the Scottish Charity Regulator has launched a new website which includes a new search function.

OSCR launches new website

20 Nov 2014

The Office of the Scottish Charity Regulator has launched a new website which includes a new search function.

Data from controversial Samaritans app to be deleted

17 Nov 2014

Samaritans has promised that all data collected by its Twitter monitoring app will be deleted and the...

Post Office enables Children in Need donations through Twitter

11 Nov 2014

The Post Office has become the first UK organisation to allow Twitter users to donate to charity through...

Join the discussion

 Twitter button

@CSFinance