£30 the new limit for Gift Aid Small Donations Scheme.

The Gift Aid Small Donations Scheme (GASDS) limit has been increased from £20 to £30, with the measure likely to apply from 6 April 2019.

The rules are expected to remain unchanged, so a check will be required to make sure the donations are eligible. Reasonable steps for ensuring donations are eligible under GASDS include:

instructing all collectors to record any donations greater than £20 (greater than £30 from April 2019) so that they can be excluded from the GASDS claim

excluding £50 notes from any GASDS claim

excluding cash donations known to be from non-individuals (for example, a company or trust)

excluding any donations collected or banked outside the UK

claiming under Gift Aid rather than GASDS when it is known that a donor has completed a Gift Aid declaration for their donation

claiming Gift Aid on donations received in Gift Aid envelopes

excluding donations where the donor or someone connected to them has received a benefit from you as a result (gifts with negligible value such as a lapel sticker are allowed)

excluding membership fees as they are not small donations for GASDS purposes.

Calculating a GASDS top-up

The amount of GASDS top-up payment available can change depending on what the basic rate of tax is (currently 20%).

To work out the GASDS top-up amount that can be claimed:

Start with the total amount of small donations collected (for example, £200).

Take the percentage amount of the basic rate of tax away from 100 (for example, 100 minus 20, which gives 80).

Divide the percentage amount of the basic rate of tax by the result of step 2 (for example, 20 divided by 80 which gives 0.25).

Multiply the result from step 3 by the total amount of small donations collected from step 1 (£200 multiplied by 0.25 which gives £50).

As long as the basic rate of tax is 20%, you can work out the top-up payment quickly by multiplying the amount of eligible small donations by 0.25. For example, the top-up payment for small donations totaling £1,000 would be £250 (£1,000 x 0.25).