HMRC has published draft regulations, an Explanatory Memorandum and Tax Information and Impact Note (TIIN) explaining reducing the time limit from 60 to 35 days for agents to pass money held under Payroll Giving schemes. HMRC administers the Payroll Giving scheme under The Charitable Deductions (Approved Schemes) Regulations 1986. These regulations include a requirement for agents to pass on to charities within 60 days, sums they get from employers under the scheme. Secondary legislation will amend the 60 days to 35 days subject to certain conditions. The conditions are designed to ensure that agents have enough time to check information provided by employers and that nominated beneficiaries are entitlement to receive tax advantaged donations under the scheme. To accommodate practical problems arising where an agency has made no payment to the charity specified in the 12 months immediately preceding receipt of a donation, an approved agency may extend the 35 day period to 60 days.
When approved, this measure will have effect for money received by agents on and after 6 April 2014.
The Charitable Deductions (Approved Schemes) (Amendment) Regulations 2014 Explanatory Memorandum The Charitable Deductions (Approved Schemes) (Amendment) Regulations 2014 Tax Information and Impact Note - Payroll Giving: reduction in donation hand over time
Comments on this should be sent to David McDowell by 18 February 2014.
Payroll Giving - matched funding is on the increase
5 February 2014
2014 will see tax efficient Payroll Giving celebrate its 27 th birthday and recent figures from the Association of Payroll Giving Organisations (APGO) show that employers are doing their bit to boost charitable giving. Recent figures issued by APGO show that companies donated over £7.5 million in the last financial year (2012-13) in match funding employee's donations through Payroll Giving which reflects a huge increase of £1.5m on the previous year. The announcement follows a revision to HMRC figures and brings the total donated to charity by employees and companies through Payroll Giving to £162.5 million this financial year, an increase of £38.6 million on the previous year. Further figures released by the APGO show that a record 48% of employers engaged in Payroll Giving schemes pay the administration charge on behalf of their employees. This again puts Payroll Giving ahead of other donation methods as the most cost effective way for people to give and ensures that 100% of employee donations go directly to the charities they are supporting. A representative of the APGO said: "We are delighted to be able to release these figures on behalf of our members and would like to take this opportunity to say a huge thank you to corporate organisations that continue to champion and fund Payroll Giving. We see this as a starting point to encourage more employers to support employee's charitable donations by providing and facilitating Payroll Giving."
CIPP Policy News Journal
16/04/2014, Page 368 of 519
Made with FlippingBook - Online magazine maker