HMRC has issued draft regulations and a Tax Information and Impact Note (TIIN) on the reduction of donation handover time under the Payroll Giving scheme from 60 to 35 days.

Following an earlier consultation in Q1 2013 which looked at ways to improve the process of Payroll Giving, the government plans to introduce secondary legislation to reduce the time limit to 35 days for agents to pass money they hold under the Payroll Giving scheme to charities, provided certain conditions are met.

The conditions are designed to ensure that agents have enough time to check information provided by employers and that nominated beneficiaries are entitled to receive tax advantaged donations under the scheme.

The existing 60-day time limit will continue apply to money held in circumstances which do not meet the new conditions.

The proposed legislation will apply to small businesses in the form of agents which are charities and will have effect for donations received by these agents on and after 6 April 2014.

The consultation closes for comment on 18 February 2014.

The draft legislation and TIIN are available from HMRC