Budget 2011 – SA Donate scheme to be withdrawn
The Government have confirmed that the SA Donate scheme is to be withdrawn for repayments of tax due on tax returns for 2011-12 and subsequent years, and for any repayments made in respect of earlier tax years on or after 6 April 2012.
The scheme was introduced in 2005 and allowed self-assessment taxpayers who were due a repayment of tax from HMRC to instruct HMRC to forward the repayment instead to a charity of the taxpayer’s choice. The scheme according to HMRC, has not been well used, is not cost-effective and is vulnerable to fraud without extensive upgrading.
The resources saved from the withdrawal of the scheme will be redirected to support the introduction of an online claims system for Gift Aid.