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Gift Aid Update

NODA

Sept 2012

Gift Aid update for NODA Societies (this may also apply to non-NODA societies, so check it out!)

NODA has received several queries about Gift Aid in the past few months, and so we reproduce here the advice received from Her Majesty's Revenue and Customs (HMRC) in response to a request from us to seek clarification on this subject -

HMRC advise that each NODA society will need to write to HMRC Charities section (see address below) on a case by case basis, outlining how they intend collecting show fees from society members; clarifying who is eligible for participating in a show (e.g. members only or the general public – bearing in mind that the general public may need to become members of a society before they are eligible to participate in a show); and also the costs and the contribution to those costs of the show fees e.g. the total show budget may be £20,000, which includes the cost of a Musical Director and Director costing £X plus 50 cast members all paying £20 each to the society = £1000.

What HMRC need to rule on is the value of the benefit to the members. If the benefit is perceived to be material in nature, then it will not be gift-aid-able. If immaterial, then they may rule in favour of allowing Gift Aid to be claimed. Either way for Gift Aid to be allowable the payments need to be voluntary in nature.

NODA recommends that a society should seek HMRC advice, by writing in to HMRC and getting a written response, as this will put it officially on record. If the ruling is in favour of claiming the Gift Aid then at least in the event of a future query, there is a written ruling from HMRC allowing this.

General advice to affiliated societies from NODA... if in doubt do not claim Gift Aid! Get it cleared with HMRC and then submit your claim retrospectively if allowed to do so.

Contact address for HMRC -

HMRC Charities

St John’s House

Merton Road

Bootle

L69 9BB

Telephone: 0845 302 0203

26 October 2011



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