CTG has responded to HMRC’s consultation on proposed simplifications to the Gift Aid Small Donations Scheme (GASDS).

GASDS consultation – CTG response

The response:

• Welcomes the value of the Scheme but notes HMRC’s recent figures showing that take-up of GASDS increased slightly in 2015-16, to £26m, but that this was still far lower than originally forecast
• Hopes that the proposed reforms to the Scheme, including a relaxation of the Gift Aid history requirement, will help to widen its accessibility, particularly among smaller charities
• Welcomes the Government’s proposal to give serious consideration to extending GASDS to include contactless payments, given their increased use and the potential they have to replace conventional bucket collections
• Recommends that the Government consider increasing the maximum eligible GASDS donation to match the £30 contactless maximum if it decides to pursue this extension of the scheme
• Calls for additions to the guidance to reflect worked examples of how GASDS applies in different scenarios, in order to improve clarity, given that charities simply not understanding the scheme – and therefore choosing not to use it – appears to have been the biggest factor contributing to take-up being so much lower than anticipated.