Dealing with HMRC

HMRC registration

What types of registration are there?

There are two types:

• HMRC registration, which is to do with tax, particularly Gift Aid.
• Charities registration, which is to do with demonstrating charitable status (read about charity registration here).

HMRC registration ‘the tax one’

This registration relates to a charity’s tax affairs. Although an HMRC number can be used to demonstrate charitable status, for simplicity it’s easiest to regard this registration as ‘the tax one’.

Any organisation wishing to take part in the Gift Aid scheme must first register with HMRC. Details of how to register are here: HMRC registration. Once registered, a charity is issued with an HMRC number.

HMRC numbers

HMRC registration numbers generally begin with an X for charities in England and Wales, CR for Scottish charities or CH for those in Northern Ireland.

These numbers identify a charity to HMRC and are therefore always included in Gift Aid repayment claim submissions, along with charity name.

These details are also therefore required as part of the initial set up on Fund Filer and would be required in any communications a charity makes with HMRC in connection with its tax affairs.

Charities Online

The next step after obtaining HMRC registration is to register with Charities Online via this link: https://www.gov.uk/charity-recognition-hmrc

This will enable you to submit electronic repayment claims through Fund Filer. Be sure to have your HMRC reference details with you when applying.

You will be issued with a User ID and will choose a password as part of the enrolment process. Once complete, an activation code will be issued to you. Be sure to use this code to activate your account before trying to submit repayment claims, otherwise nothing will work!

Repayment claims

Full details of how to make a repayment claim appear via this link to HMRC’s website: https://www.gov.uk/claim-gift-aid/how-to-claim.

Since April 2013, Gift Aid has been recoverable through HMRC’s ‘Charities Online’ service via one of three options. The previous ‘R68i’ style of paper-based submission is also valid until 30 September 2013, but HMRC is encouraging all charities to move to one of the newer options.

Gift Aid declarations must:

• Be accurate. Inaccurate claims will be returned unpaid.
• Be made at least once a year. A charity should make at least one claim per year in respect of its accounting year end, which may or may not also coincide with the tax year end.
• Cover donations 4 years old or less. HMRC allows backdated claims in respect of donations made in previous years. It allows charities to go back four accounting periods plus the current period.

Useful HMRC forms

Gift Aid administration invariably comes with a need to know about various forms.

These can all be viewed via this link to HMRC’s website https://www.gov.uk/government/collections/charities-and-community-amateur-sports-clubs-forms.