Gift Aid claims to all be processed online by Charities from 1 Oct 2013

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Charities must make all Gift Aid claims using the new system ‘Charities Online’ from October 1st 2013 and HM Revenue & Customs has written to charities, who haven’t yet signed up to the new online Gift Aid system to remind them that the old paper claim forms will not be accepted from September 30th 2013.

It has been revealed by HMRC that 19,000 charities have already registered to use the new system so far and HMRC said that almost 50 per cent of Gift Aid payments are being made through the new system. The new system can prevent mistakes as it is checked before the claim is submitted so it is less likely to be sent back for corrections to be made by the charity. It is also faster, able to prevent delays and can save on postal costs.

However it seems that not all the charities will be able to make the September deadline as they are unable to update their IT systems on time. Charities that have no internet access are able to claim using a new type of paper form, known as a ChR1. The ChR1 can be ordered from the Charities Helpline (0845 302 0203).

The Charity Tax Group’s vice chair Richard Bray has previously raised concerns about whether the sector would be ready in time. A spokesman from HMRC has told that they are making individual arrangements for those charities that cannot make the deadline. The letter states that charities will need to allow up to 15 working days from the day they sign up before making their first claim.

If you require any further information please contact Lesley Malkin.