What's it all about

In the budget for April 2000 the Chancellor set out the most significant change to charity giving for many years. As well as making the process simpler to administer the Chancellor widened the scope on what can be reclaimed. The changes took effect on 6th April 2000. The Church of England estimate the changes are worth in excess of 20 million pounds per year to the Church of England - It could be worth between £5,000 and £10,000 to our parish - just for signing a simple form.

If you pay tax, Gift Aid is a scheme by which you can give a sum of money to charity and the charity can reclaim from the Inland Revenue basic rate tax on your gift. That increases the value of the gift you make to the charity.

For example, if you give £10 using Gift Aid in the tax year 2010/11, that gift is worth £12.50 to the charity. Subject to a few rules, you can give any amount, large or small, regular or one-off, and the charity can reclaim the tax. If you are a higher rate taxpayer, you can claim relief on the difference between the basic rate and higher rate of tax. If you do not pay tax, you should not use Gift Aid.

For full details see this page on the HM Revenue & Customs web site.

Questions and Answers…

How does my gift qualify for Gift Aid?

You must

	pay at least as much tax as the charities will reclaim on your gifts in the tax year in which you make them (tax credits on dividend income will count towards the tax paid). The tax year runs from 6 April in one year to 5 April in the next.
	make a declaration to the charity that you want your gift to be treated as a Gift Aid donation
	not receive excessive benefits in return for your gift.

What if I am a higher rate taxpayer?

The charity reclaims tax on your gift only at the basic rate, even if you are a higher rate payer. If you are a higher rate taxpayer, you can claim the difference (20% in 2010/11) between the higher rate of tax of 40% and the basic rate of tax of 20% in your Self Assessment return.

Can I count tax paid on my dividend income?

Yes. Tax credits on dividend income can be used to cover tax reclaimed by the Charity.

What about tax deducted from my savings?

If tax is deducted from bank or building society interest you receive, you can use that to cover the tax on the gift, provided you have not reclaimed it. If you have reclaimed that tax, then you must not use it to cover the tax on your gift.

Why do I need to give a declaration?

The declaration is the charity's authority to reclaim tax from the Inland Revenue on your gift. By giving the declaration, you are confirming that you understand this.

Where can I get further information

Further information can be found on the Inland Revenue web site > more 

Three simple steps to take …

	Complete a "Gift Aid Declaration" form ( click here to open) or obtain one from Richard Hutchins in Church.
	If you do not have a pledge with us please give some thought to signing an annual pledge (click here to open form) - This can be either by standing order from your bank or via weekly stewardship envelopes. A form, together with a bankers order form is attached in case you would like to use it. If you already have a pledge and would like to change the amount please use this form as well.
	If you want to make further donations to the church from now on, in addition to any regular commitment you may already have, please make sure you use one of the "Gift Aid" envelopes. For gifts to other charities (i.e. mission of the month) please use the white Gift Aid envelopes which are available in church. Once the form returned to Richard Hutchins who will send out special personalised envelopes to you for use when you want to make additional gifts to the church - don't forget, this may be just an extra £1 in the plate.

If you would like assistance, need further information or would like additional copies of the forms please do ask.

Our forms are in Adobe PDF format - If you don't have the free Adobe reader installed click here to get your copy