The Chairman of the Charity Tax Group (CTG), has written to the Chancellor requesting immediate support for charities through the tax system during the COVID-19 pandemic.

The letter presents six practical proposals to simplify charities’ interaction with the tax system and to unlock important tax reliefs for charities at a time when cashflow is under serious strain. The Chancellor is asked to:

1. Allow Gift Aid on donations arising from allowing charities to keep payments originally made for cancelled events/loans etc
2. Provide urgent confirmation that Gift Aid can be claimed on donations received by charities through Facebook (and similar operators) to release millions of pounds
3. Confirm simplified audit processes for Gift Aid on text/SMS donations at a time when their use may increase
4. Confirm that no HMRC action will be taken to collect VAT on digital advertising by charities during the crisis
5. Extend the Expanded Retail Discount to all charity properties to ensure 100% business rates relief for the year 2020/21
6. Confirm flexibility over tax deadlines and tax administration

Support for charities through the tax system during the COVID-19 pandemic

In support of the charity sector, CTG has published a coronavirus information hub and will continue to link to relevant Government guidance and business support packages.