If you’re a charity shop, did you know you can get extra income from Gift Aid?
Even though Gift Aid can only be reclaimed on cash donations, the Retail Gift Aid Scheme enables charity retailers to benefit from extra revenue from HMRC.
The Scheme allows charity retailers to act as sales agents for the gift donor who has pre-agreed that, when the goods are sold, the proceeds will go to the charity.
In order to claim Gift Aid from HMRC charity retailers have to be able to link each Gift Aid sale to a UK taxpayer. A simple technology solution makes this much easier for the charity retailers and their staff by printing a label for each item containing the donor’s unique barcode as well as the price so that both can be scanned at the till when the donated item is bought.
Before the charity can make a Gift Aid claim, HMRC requires them to contact each individual donor to tell him or her the net amount raised from selling their goods. Then the charity can reclaim the tax in respect of the donation.
For further information about the Retail Gift Aid Scheme, read our full guide. If you would like to find out more about how we can help you to implement a retail gift aid solution, please see our solutions.
See our case study about how we helped this charity: St Mary's Hospice - full case study...