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Gift Aid: Operating Costs

Asked by Nigel HuddlestonConservativeTreasuryTabled Answered 9 March 2026UIN 116519

The question

To ask the Chancellor of the Exchequer, what assessment she has made of the administrative costs to charities caused by the current manual Gift Aid process, including the time and resources spent correcting errors and navigating rules.

Answered by Dan Tomlinson

HMRC has worked collaboratively with a broad range of charity sector stakeholders to explore the potential of Future of Gift Aid (FOGA). This work included extensive research and analysis of the implications of FOGA and the effectiveness of the existing Gift Aid system.

HMRC has not made a formal quantitative assessment of the administrative costs to charities arising from the current Gift Aid process. HMRC will continue to engage with the charities sector to improve the way that Gift Aid works through the use of digital technology.

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