Damien Hinds, the exchequer secretary, has said that the Cabinet Office is looking to introduce a simpler model for gift aid declaration, to make it easier for donors to understand.
Speaking at the Charity Tax Group annual conference in London today, Hinds (pictured) outlined four developments he was hoping to implement in charity taxation, including simplifying gift aid declarations for donors.
“We are finalising a new, simpler model gift aid declaration and guidance, to make it easier for donors to understand.
“We hope to announce specific changes to this very soon – and I know these changes will be the result of long and detailed work between HMRC, and the charities sector.”
The exchequer secretary said that the current gift aid declaration model is “cumbersome and off-putting” and said he was not “convinced the regulations have kept up with the modern world”, when it comes to donations made by text message, ATMs and Oyster Cards.
Hinds also said that the government will launch a call for evidence to simplify the rules around donor benefits and work on giving intermediaries a greater role in how gift aid is administered.
The government will “informally consult on draft regulations over summer,” before introducing changes in April 2016, he said.
Hinds also said that government had two further developments “on the horizon which, in the longer term, could be quite significant”.
These developments are the Scottish Government setting income taxes in the country under the devolution agreement and the possibility of integrating charitable donations into personal tax accounts, in lieu of self-assessment, as mentioned by Chancellor George Osborne in his last Budget.
Hinds did concede that there was “a lot of work to do in both of those areas” and said “there will be some tough choices to be made here but also, I hope, some interesting opportunities for you”.
The exchequer secretary also pledged to “continue the excellent dialogue we have with the charities world”, as these issues are worked through.
Damien Hinds was appointed exchequer secretary on 12 May. In the previous Coalition government, he was assistant government whip and a former Parliamentary private secretary to the minister for the armed forces.
