Longer processing times for Gift Aid claims are affecting cash flows for larger charities, a membership body has said.
The Charity Tax Group this week said it had discussed the issue with HM Revenue and Customs and the government body had advised that a “processing issue” had created a backlog of claims requiring approval.
Charities received £1.88bn in Gift Aid payments in the year to the end of March 2026, up 10 per cent compared with the previous year.
About half of this increase was driven by a small number of additional very large Gift Aided donations, HMRC said.
HMRC guidance sets out that charities can expect their claims to be paid within five weeks of submission.
Richard Bray, chair of the Charity Tax Group, said cash flow was a “major issue” for many charities, given the economic outlook, and it was vital that Gift Aid payments were made to charities in a timely manner.
“For some charities it can be the difference between being able to pay the bills and not being able to pay the bills,” said Bray.
“The CTG has a constructive relationship with HMRC but, like any organisation, HMRC may sometimes not meet its targets for making payments.
“In some cases, we are also aware that greater HMRC scrutiny of Gift Aid claims has led to delays in payments being made.”
Bray said the CTG has regular meetings with HMRC and aims to hold the government department accountable where there are delays that put charity finances at risk.
“These discussions tend to be very positive and usually lead to HMRC taking steps to rectify these problems,” Bray said.
“It is important that charities let us know any issues that they are facing with Gift Aid payments.
“In this way we can continue to ensure that HMRC is held to account when payments are not being made as soon as they should be.
“It is our role to represent the practical concerns of our members. This means ensuring that the vital flow of Gift Aid income continues in these difficult times.
A spokesperson for HMRC said the department was “continuing to modernise” the Gift Aid system.
“We’re aware that a small number of claims have taken longer than usual to be processed, but we’re working hard to reduce any delays between submission and payment,” the spokesperson said.