7.1.1 HMRC selects a number of charities and CASCs for audit to ensure that the Gift Aid scheme is being used properly and that any repayment claims made are accurate. If your repayment claim is selected for a review, it does not necessarily mean that HMRC believes the claim is wrong or that there is suspicion about anything to do with the claim or your charity or CASC.
HMRC wants to help you to get things right and will help your charity or CASC to make further repayment claims if it is found that less tax has been claimed than was due
7.1.2 HMRC auditors are not evaluated on the level of adjustments made or rewarded for the amount of tax they recover.
7.1.3 Charity trustees are ultimately responsible for ensuring that all claims are correct so they have an obligation to ensure that appropriate systems are in place to achieve that result. It is also important that they are aware of any review being undertaken by HMRC, and if it isn't necessary for them to deal with the auditor directly they, should nominate a suitable charity official to do so in writing.
7.1.4 Chapter 3 of the Detailed Guidance Notes for Charities explains the requirements of the Gift Aid scheme and the records you should keep and how long you need to keep them.
7.2.1 Claims for audit are generally selected for review on a 'risk' basis which takes into account a wide range of factors. HMRC also select a number of claims for review on a random basis.
7.2.2 If your charity's repayment claim is selected for a review, it does not necessarily mean that HMRC believe the claim is wrong or that they are suspicious about anything to do with the claim or your charity.