Tax & gift aid

Contrary to popular belief, charities can be exposed to a number of significant tax liabilities. Our experience of charity structures means we can help to minimise the impact on your bottom line.

Avoiding the pitfalls

We will keep you up to date with all the available charity tax reliefs, tax breaks and tax planning incentives to enable you to make the savings for your charity and any trading subsidiary.

We can help your charity to mitigate the impact of:

  • Capital gains tax
  • Corporation tax
  • Income tax

Reclaiming gift aid tax

One of the biggest concerns for charities is to ensure that they can reclaim the tax on payments made under gift aid. Fortunately we understand the complexities and can help you to avoid the pitfalls.

Before HMRC completes its gift aid audit you need to be prepared and to know the areas they are likely to target.

Gift aid guidance and training

We can provide you with short briefing sessions to talk you through the requirements for gift aid and to ensure that you are not breaching any HMRC limits.

The main area of focus for HMRC is donor benefits. Most often this will look at what a donor gets in return for their annual subscription and trying to place a value on these benefits.

The current limits for donor benefits are as follows:

Amount of donation Maximum value of benefits
Up to £100 25% of donation
£101 to £1000 £25
Over £1,000 5% of donation up to a maximum of £2,500 

HMRC may seek to value newsletters, free and ticketed events, discounts given in shops and cafes, and will certainly look to ensure that the charity is keeping detailed records of everything it gives to its members.