Explanatory note

These Regulations, which come into force on 6th April 2014, amend the Charitable Deductions (Approved Schemes) Regulations 1986 (S.I. 1986/2211) (“the principal Regulations”).

Regulation 3(ja) of the principal Regulations is amended in consequence of the substitution of regulation 4A of those Regulations.

The substituted Regulation 4A of the principal Regulations provides that an approved agency must pay to the charity specified by an employee the sum withheld from the employee’s emoluments pursuant to the payroll giving scheme within 35 days of the agency’s receipt of it provided the agency is notified as described in regulation 4A (2) (a) (i) and (ii) on or before the day of receipt. In other cases, payment must be made within 60 days of the receipt by the agency of the sum withheld from the employee’s emoluments or, if later the notification of the identity of the charity specified by the employee. The 35-day rule is further qualified where an agency has made no payment to the charity specified in the 12 months immediately preceding the receipt of the sum. To accommodate practical problems arising where an agency has made no payment to the charity specified in the 12 months immediately preceding receipt of a donation, an approved agency may extend the 35-day period to 60 days.

Regulation 9(3) of the principal Regulations is substituted so that an approved agency’s failure to make payment before the expiry of the relevant time in regulation 4A must be reported no later than 7 days after the expiry of that time.

Consequential amendments are made to regulations 2 and 11 of the principal Regulations in the light of section 91 of the Finance Act 2011 (c.11) which repealed (with effect from 19th July 2011) section 38 of the Finance Act 2000 (which provided for a supplement to be paid to charities on donations made under payroll giving schemes).

A Tax Information and Impact Note covering this instrument has been published on the HMRC website at http://www.hmrc.gov.uk/thelibrary/tiins.htm.