Introduction
Gift Aid can be a game-changer for charities, but it comes with rules. Slip up, and you might lose out on funds or face awkward HMRC queries. Let’s walk through the top five Gift Aid mistakes to avoid, so you can stay on HMRC’s good side and keep every penny your donors want you to have.
1. Missing Declarations
You can’t claim if you don’t have a valid Gift Aid declaration. Make sure you collect one — paper or digital — for every donation, and store it safely for at least six years.
2. Claiming on Ineligible Donations
Event tickets or raffle proceeds don’t usually qualify. Only pure donations from individuals paying UK tax are eligible. Check HMRC’s guidelines if you’re not sure.
3. Poor Record-Keeping
Wobbly spreadsheets lead to confusion. Record each donation carefully, noting the donor’s details, date, and if you have a declaration on file. Keep these records neat and accessible.
4. Double-Claiming by Mistake
Be sure each donation is only claimed once. If you’re merging spreadsheets or using multiple systems, watch out for duplicates. HMRC doesn’t like paying out twice!
5. Forgetting the Small Donations Scheme
Cash donations under £30 can be claimed via GASDS with no declaration needed, up to certain limits. It’s free money, so don’t miss it!
Conclusion
Avoiding these pitfalls lets Gift Aid work its magic. Stay organised, keep clear records, and follow the guidelines. Then you can relax and enjoy that extra 25% rolling in without any nasty surprises.
How GiftAider Cloud Could Help: GiftAider Cloud flags incorrect or duplicate entries before you file, drastically reducing errors. It also reminds you about potential GASDS claims, so you don’t miss easy extra cash.