News – Summer 2019
Gift Aid Small Donations Scheme improved
Improvements have been made to the Gift Aid Small Donations Scheme (GASDS). With effect from April 2019 CASCs can now claim 25% top up payments on small donations from individuals of up to and including £30 (increased from £20). Previous improvements to the scheme mean the donation can now be made by cash or contactless card and a maximum £2,000 per year can now be claimed. There are conditions to be met including the need to be successfully claiming Gift Aid proper (GA). GASDS does not require a GA declaration form to be filled out. Both Gift Aid and GASDS provide great opportunities for CASCs to raise much needed extra funds.
Tax relief for individuals lending money to a club
CASCs which are legally constituted as Community Interest Companies (CIC) or Community Benefit Societies (CBS) may be able to offer tax breaks to individuals who lend money to the club. Social Investment Tax Relief (SITR) can deliver 30% income tax relief to an individual making an unsecured loan to a CBS or CIC which is not repayable within 3 years. The current SITR scheme is being considered by HM Treasury.
CASC registrations milestone
The number of sports clubs registered as CASCs has reached another milestone. There are now over 7,000 registered clubs! These clubs are benefiting from the associated tax reliefs of CASC status including Corporation Tax reliefs, 80% mandatory business rates relief and Gift Aid amongst others.
Letters to CASCs on Gift Aid
HMRC are in the process of writing to a selection of CASCs explaining that Gift Aid is not allowed to be claimed on membership subscriptions and that a CASC can only claim Gift Aid on a gift received from an individual who has completed a Gift Aid declaration. HMRC do accept however, that a sporting charity may be able to claim Gift Aid on a modest annual subscription provided training and match fees are charged separately which are not eligible for Gift Aid.
Corporation Tax returns
Some registered CASCs will be asked to file Corporation Tax (CT) returns by HMRC which is issuing advance notice letters that they will be required to fill in a CT return. CASCs should ensure that their contact details held with HMRC are up to date since there are penalties for failure to file a CT return.