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Stewardship

Gift Aid

New to Gift Aid?

We run occasional introductory sessions to help anyone new to claiming Gift Aid or who would like a refresher.   These sessions cover the basics of Gift Aid including GA declarations, how to claim on line and the Small Donations Scheme. 

Please e-mail Wendy Robins for more information.

 

A gift from the Government to your church

  • Do you pay income tax or Capital Gains Tax?
  • Do you give to your church?
  • Would you like your church to be able to reclaim the tax which you have paid?

If you answered YES to all of these questions, if you give using the Gift Aid Scheme which will enable your church to reclaim the tax paid on the amount that you give. Tax payers can increase the value of their donations significantly if they sign a Gift Aid declaration - currently by 25% - that is 25p for every £1 donated.

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 Secretary, or something similar. You only need to advise them 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. Some Gift Aid can be claimed on cash in collections but the amount that can be claimed is limited so it’s best for your church if you still give through the regular Gift Aid scheme.

Frequently asked questions by donors

Do I have to give a regular amount each week or each month or each year?
We hope that you will continue to pledge an amount each week, each month or each year. But the benefit of the new system is that once you have agreed that the church may collect the tax paid on your donations, 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 Secretary 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 Secretary; 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 Secretary 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

If you want more information about any aspects of tax-efficient giving including Gift Aid, please contact Communications & Resources on 020 7939 9400.

More information for Gift Aid Secretaries can be found here.