HMRC launched its new Charities Online Service in April 2013, to enable charities and Community Amateur Sports Clubs (“CASC”s) to sign up and make repayment claims online.
There are three ways in which charities and CASCs can claim gift aid repayments and/or repayments of tax deducted from other sources of income. The first two options require you to sign up to use HMRC’s online services and enrol for charities online, with the third option using a paper form.
- Using an online formThis can be used to submit a claim with up to 1,000 gift aid donors by completing and attaching a spreadsheet to the online claim form.There is no limit to the number of claims a charity or CASC can be submit. For example, if you normally send one annual claim with 6,000 donations, you can submit 6 claims online with up to 1,000 donations on each claim form.
- Through your own databaseThis is aimed at large charities who file gift aid claims for more than 1,000 donors, although can be used to make smaller claims.Those choosing this option will be able to send one claim per day directly from their own internal database or system, with details of up to 500,000 gift aid donors. Charities using this method will need to develop their own compatible software package or purchase a suitable package from a software provider.
- Using a paper formThe final option means that the online claim system is now compulsory, with HMRC providing a paper form for those who do not have access to the internet.There is a new paper repayment claim form called ChR1 which replaces the R68 claim form. Forms can be ordered from the HMRC Charities Helpline and when completed, they should be posted to HMRC.
The form is designed so HMRC can automatically scan the information into the new system. Old R68 forms or photocopies of the ChR1 will not be accepted. Continuation sheets for the form (called ChR1CS) can be requested so you can send in the details of up to 90 gift aid donor with each individual claim.
The online claim system is meant to be faster with claims being more accurate and with the charity making a saving on postal costs.
The claims will be acknowledged, with you getting an onscreen confirmation reference number when the claim is submitted successfully and also a separate confirmation when the repayment is made.
Easier gift aid records for sponsored events will also apply, with all donations for someone taking part in a sponsored event now being put as one entry under the name of that participant, with there no longer being any need to list every individual donor who sponsored the person except where individual donations of £500 or more are made.