Backdated repayment claims

Time limits and interest paid

There are time limits for charities to make their repayment claims to HMRC. The time limits are different for Charitable Trust and Charities that are treated as companies for tax purposes. Once the time limit for making a repayment claim to HMRC has passed any tax due cannot be claimed.

However, charities are eligible to receive interest on backdated repayment claims that are received by HMRC Charities within the time limits.

Time limits for a Charitable Trust

Claims by a Charitable Trust must be made no later than five years after the 31 January following the end of the tax year to which the claim relates.

Examples:

For donations made during the tax year ended 5 April 2007 the final date on which a Gift Aid repayment claim can be made to HMRC Charities is 31 January 2013.

For donations made during the tax year ended 5 April 2002 the final date on which a Gift Aid repayment claim could be made to HMRC Charities was 31 January 2008. It is now too late to make a repayment claim on donations received during this period.

Time limits for all other charities

Claims by all other charities must be made no later than six years after the end of the accounting period to which the claim relates.

Examples:

For donations made during an accounting period ended 31 December 2007 the final date on which a Gift Aid repayment claim can be made to HMRC Charities is 31 December 2013.

For donations made during an accounting period ended 31 March 2002 the final date on which a Gift Aid repayment claim could be made to HMRC Charities was 31 March 2008. It is now too late to make a repayment claim on donations received during this period.

Interest paid on backdated Gift Aid repayment claims

If your charity makes a repayment claim for earlier years than the current tax year, it may qualify for an additional payment of interest.

The amount of interest payable will depend on:

• the amount of the repayment due for each of those years
• whether your charity is set up as a Trust or is treated as a company for tax purposes: this affects the date from which interest is payable - called the 'relevant date'.

The ‘Relevant date’ for Charitable Trusts

Interest is payable from 1 February in the year following the tax year in which the income in question was received.

Example:

For income received in the tax year ended 5 April 2007 interest is payable from 1 February 2008.

The ‘Relevant date’ for all other charities

Interest is payable from the day after the end of the accounting period during which the income was received.

Example:

For income received in an accounting period ended 31 March 2007 interest is payable from 1 April 2007.