23 October 2014 
Amanda Darley, Head of Operations and Engagement
Further to the article on Gift Aid in last week's Digest, we have received a number of questions about the content of Harriet’s note. Harriet prepared the note as an overview guide to when and how a problem could arise. In her usual upbeat style(!), Harriet suggested that this issue should not affect the 2014 accounts.
However, from the additional information we received yesterday, it seems that ICAEW are due to issue a statement on their revised position very shortly, maybe as early as next week – and that at least some of the accounting firms may have had sight of this in advance (although they are unable to share it). This means that if your subsidiary companies are affected by this change in interpretation, and the 2014 accounts have not been signed, then your auditors may require that you take some remedial action in respect of Gift Aid payments made in the current and/or prior years before they will approve the 2014 accounts. It does also seem than in some limited circumstances, these accounting adjustments could result in an unexpected corporation tax liability.
Once BUFDG has sight of the ICAEW guidance, we will contact HMRC in order to work with them to try to mitigate any impact for our members. We will keep you updated on this issue as it progresses, but please get in touch with Amanda if you would like to provide any information to raise with HMRC.
