Introduction
Introduction
Gift Aid is a UK scheme from HMRC where eligible organisations such as charities can accept donations instead of payments and claim the equivalent of the donators income tax relief. This works by capturing a customer’s details at the POS when they wish to purchase a qualifying item. This data is then exported and submitted to HMRC to claim tax relief for the donation.
How it works
When an item marked with a Gift Aid attribute is sold via the POS, a prompt is displayed to confirm if the customer would like to give Gift Aid to the organisation. If Yes is chosen then the required customer detail is captured and the value of the transaction will be recorded for HMRC.
On a periodic schedule, these transactions are exported to a spreadsheet and submitted to HMRC, usually via a dedicated portal for Gift Aid. Your accountant will be able to further advise on the submissions process.
For full details of Gift Aid rules see HMRC Gift Aid