In updated guidance (Charities: detailed guidance notes on how the tax system operates on Gov.uk) HMRC has confirmed that, where an administration fee is deducted from a charitable donation which reduces the actual amount received by the charity, the gross amount of the donation remains eligible for gift aid.
Section 3.4.4 of HMRC’s gift aid guidance covers admin fees and donations using digital platforms, credit and debt cards noting that, subject to the normal qualifying conditions for gift aid, the charity can treat the admin fees as charitable expenditure. Where, however, the charity is unable to show a clear audit trail for the admin fees, HMRC says that gift aid should only be claimed on the net value of the donation received.
In updated guidance (Charities: detailed guidance notes on how the tax system operates on Gov.uk) HMRC has confirmed that, where an administration fee is deducted from a charitable donation which reduces the actual amount received by the charity, the gross amount of the donation remains eligible for gift aid.
Section 3.4.4 of HMRC’s gift aid guidance covers admin fees and donations using digital platforms, credit and debt cards noting that, subject to the normal qualifying conditions for gift aid, the charity can treat the admin fees as charitable expenditure. Where, however, the charity is unable to show a clear audit trail for the admin fees, HMRC says that gift aid should only be claimed on the net value of the donation received.
