Gift Aid

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 A gift from the Government to your church

• Do you pay income tax or Capital Gains Tax?

• Do you give to your church?

• Do you wish your church to be able to reclaim the tax which you have paid?

If you answered YES to all of these questions, you can give through the Gift Aid Scheme which will enable your church to reclaim the tax paid on the amount that you give. Currently this is 28p for every £1 donated - although this will change in 2011.

More details of the changes and how they will affect you.

Gift Aid is very simple

Your church will have somebody who deals with reclaiming tax on donations made. He or she may be called the Gift Aid Recorder. You only need to advise the Gift Aid Recorder that you wish the church to be able to reclaim tax paid on any donations that you make, complete a simple declaration, and it will be possible for the claim to be made.

Her Majesty's Revenue & Customs (HMRC) requires churches to have an audit trail of all donations made. So donations should be made by cheque, standing order or through the weekly envelope scheme.

Donations of loose cash put in the collection MAY NOT be claimed on.

Frequently asked questions by donors

Do I have to give a regular amount each week or each month?
We hope that you will continue to pledge an amount each week or each month. But the benefit of the new system is that once you have agreed that the church may collect the tax paid, your permission may be applied to any gifts which you make to your church.

I am due to retire next year and I do not know whether I will still be paying tax.
You may allow the church to reclaim the tax on any gifts which you make until that time. If your tax situation changes, you should advise the Gift Aid Recorder immediately.

What if I’d like to make a "one-off" gift?
If you have already signed a general Gift Aid Declaration, you need do no more; any recorded gifts which you make to your church will be tax efficient.
If you have not signed a declaration, please contact your Gift Aid Recorder; you may either sign a declaration which relates to this specific gift or a more general one which will allow your church to reclaim the tax on all gifts that you make in the future, as long as the Recorder knows about it and there is an adequate audit trail.

What if I pay tax at more than the basic rate?
When you complete your annual tax return, HMRC will refund the difference between the basic rate of tax and the higher rate on all charitable donations. For this reason, you may wish to increase the amount of your gift.

What does this mean to me if I do not pay tax?
You may not give under the Gift Aid scheme if you pay no tax. However remember that if you receive interest on a bank or building society account net of tax or have paid capital gains tax, you have paid tax and are entitled to use the scheme.

Further help and information

The Diocesan Office has produced a spreadsheet that can be used by parishes to record donations. It can be downloaded in various formats. Each file contains the spreadsheet, a partly completed example file and some notes:

• Microsoft Excel 2000 version (37KB zip file)

• Microsoft Excel 5/95 version (37KB zip file)

• Microsoft Excel 4 version (50KB zip file)

A sample financial pledge form and declaration (approved by HMRC) is also available for download in RTF format (11KB).

For further information on the Gift Aid Scheme, please contact Communications and Resources.

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