Gift aid is a system in place to help charities make the most of their donations. If the donor meets the relevant criteria and opts in to gift aid, donations can be topped up by up to 25% directly from the government. Since many charities aren’t aware that they are eligible for gift aid, the HMRC offers retrospective gift aid claims where a charity can claim gift aid on donations made within the last four taxable years. Find out more about claiming retrospective gift aid for your charity and the barriers that may impact it below.

The Barriers to Claiming Retrospective Gift Aid

The most common barriers relate to charity process and timing. First of all, only registered charities can accept retrospective gift aid claims and these must be done within four years of making the donation. This means if an individual has donated money to a small charity which is not registered with HMRC, they will not be able to claim back that money via gift aid.

Secondly, even if the charity is registered and it has been between one and four years since the donation was made, HMRC will require evidence of the gift before they process a tax claim. This means that individuals must have bank statements or other documents to prove their donations in order to be eligible for retrospective gift aid.

Finally, there is also the issue of matching up new payments with legacy claims, something that can pose a major challenge if past donations haven’t been logged properly. Charities that do not have an implemented process to correctly collect donor information may struggle to claim gift aid further down the line.

Unsure of How to Make a Retrospective Gift Aid Claim?

Most charities lack the financial know-how to fully make use of the gift aid options available to them. Additionally, the regulations imposed by HMRC can pose an extra challenge with many directors and financial teams being anxious of punishment due to accidentally being in breach of these laws. GoodtoGive offer a comprehensive Gift Aid Management process that assists with the various aspects of a charity’s financial wellbeing with this including current and retrospective gift aid claims.

Contact GoodtoGive for Gift Aid Support

If you are looking to claim retrospective Gift Aid for a charity, GoodtoGive can help you. Many charitable organisations have gained the tools required to streamline their finances and make the most of donations through our gift aid management service and charity accounting services. Get in touch with a member of our team at 020 7731 2041 to find out more.