Charity Update - Spring 2013
Welcome to this edition of our update on developments affecting the charity and not-for-profit Sectors. Conscious of the many demands on your time we have revised the format so that you can scan it for issues of direct concern to you and follow the links to those articles which deal with the subject in more detail. We complement this service with our series of trustee training sessions, which are designed to give you - in the course of a pretty full day - a thorough overview of the roles and responsibilities of charity trustees, and a welcome review of new developments. Recent delegates have told us that they find them "very well run by top rate people in a superb environment"; "the day was very useful and the length of the sessions well judged". Kind regards Mike Scott
Latest News Happy New [Tax] Year! Whilst this year's Budget did not bring significant changes to the Charities sector, a number of key changes are taking place in the new tax year, which started on 6 April 2013. Income tax reduction - Gift Aid impact Whilst the reduction of the additional rate of income tax from 50% to 45% for taxpayers earning more than £150,000 per year was good news for high earners, the amount of relief they receive on donations made to charity will be reduced accordingly. If someone paying tax at the additional rate makes a donation by gift aid of £1,000, the total value of the donation to the charity will be £1,250. Previously the donor was able to claim back 30% (50%-20%) of £1250 = £375. After the change to 45% the donor will now only be able to claim back 25% (45% - 20%) or £312.50. A donor can ask for Gift Aid donations to be treated as being paid in the previous tax year if enough tax has been paid in that year to cover both any Gift Aid gifts made that year and the ones to be backdated. To be valid, the request to carry back should be submitted before the submission of the self assessment return for that previous year. Charities may consider notifying their donors of the change to assist with their personal planning, whilst highlighting the opportunity to backdate Gift Aid claims. Other Gift Aid Changes As well as the effect of the changes to the additional rate of income tax there are a number of technical and procedural changes to the Gift Aid regime which could affect your charity. We highlight these in our recent briefing note for a link to which click here. Since publication of our note HMRC have provided some updated online guidance which...
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