Payroll Giving: Reduction in donation handover time
21 January 2014
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.
Previous related CIPP news
- Payroll Giving overhaul announced - 16 September 2013
- CIPP research paper on Payroll Giving – 4 December 2013