Some charities have recently found that their Gift Aid payments are taking longer to arrive than usual, though HMRC says it is working to bring those delays down.
Charity Tax Group (CTG) said this week that some of its larger members had reported delays affecting their cash flow. As Civil Society reported, CTG raised the matter with HMRC, which explained that a processing issue had created a backlog of claims waiting for approval. HMRC told CTG that processing times are returning to normal and that the backlog is being cleared.
Why Gift Aid matters so much
Last Thursday was Gift Aid Awareness Day, and with social media awash with messages from charities encouraging donors to #TickTheBox, it was a timely reminder of how vital this tax relief is to the whole sector.
Gift Aid is one of the most important sources of voluntary income for UK charities. Income from the scheme rose by 10% to £1.88bn in the year to April 2026, with 67,650 charities receiving the relief. When Gift Aid payments slow down, even briefly, charities feel it, particularly those planning their budgets around predictable income.
Delays are one part of a wider picture, and CFG’s 2024 Gift Aid Report found that one in five charity leaders had struggled to claim Gift Aid. As CTG Chief Executive, Luke Hall, noted earlier this year, the Gift Aid rules had been designed for a paper-based era and that the system should move to digital by default.
The challenges faced by many charities in this regard are why we launched our Back the Future of Gift Aid campaign for this year’s Gift Aid Awareness Day. The campaign calls for government to work with charities, payment providers and fundraising platforms to create a simple, secure and modern digital Gift Aid system. The proposed changes would reduce administrative burdens, improve accuracy, and make it easier for charities and donors to benefit from Gift Aid.
CFG’s Policy Officer, Isaac Bristol said: "We'd like to thank the Charity Tax Group for raising this issue with HMRC, and HMRC for being open and responsive when concerns were put to them. It's reassuring to hear that the backlog is being cleared.
“Delays like these also show why the Gift Aid system needs to be simpler, more reliable and fit for a digital age. That's the aim of our Back the Future of Gift Aid campaign, and we'd encourage everyone in the sector to add their support.”
Two new resources
In the meantime, there are steps charities can make to ensure their own processes are as strong as possible, and two new resources have just launched which should help in this regard.
Our corporate partner BDO has launched free Gift Aid training for charities that claim from HMRC. It is designed to help you check that your processes for running the scheme are correct and effective.
Additionally, Charity Excellence Framework has published a checklist of the different types of Gift Aid claim that UK charities and community amateur sports clubs (CASCs) can make. It covers retrospective claims, the Gift Aid Small Donations Scheme, charity events, membership, and donated goods through Retail Gift Aid. It also sets out what can't be claimed, with links to HMRC guidance.
Help us make the case for a better system
You can help support the campaign for a new and improved Gift Aid system by writing to your MP. Our Gift Aid Awareness Day toolkit includes a draft letter you can adapt and send, asking them to Back the Future of Gift Aid. It only takes a few minutes, and MPs pay attention when they hear directly from charities in their constituency.