Why is Gift Aid important?
The income from payments via Gift Aid can be the single most significant element in your parish finances. For every £1 that is given by Gift Aid, the Inland Revenue will give 28p to your parish.
Help available for Planned Giving Secretaries
The Diocesan Office has invested in software that will allow us to administer gift aid payments on behalf of parishes, free of charge. Central administration means less work for your planned giving secretary and ensures that the administration of pledges is in line with current legislation.
How monthly Gift Aid claims work
The covenantor signs a Gift Aid declaration to the diocese in favour of your parish and a bankers order in favour of the central Gift Aid bank account. Your planned giving secretary forwards the Gift Aid declaration and bankers order to the Diocesan Office. The diocese makes a monthly claim to the Inland Revenue for the tax due. Every month the diocese will return the gift aided amount and the tax refund automatically to your parish's bank account.
Help with annual claims
We can also help parishes to run their existing planned giving schemes, where the payments are made by envelope, bankers order or cheque.
The system works as follows. The donor signs a gift aid declaration to your parish and this is forwarded to the Diocesan Office. The planned giving secretary remains responsible for recording payments made by each donor. Annually, the planned giving secretary receives a list from the Diocesan Office detailing how much should have been received from each donor and how much tax can be reclaimed. The planned giving secretary then enters the actual amounts received, signs a declaration that the figures are correct and returns the list to the Diocesan Office. The Diocesan Office makes a claim on behalf of your parish and automatically returns the tax refund in full to your PCC bank account. The responsibility for the accuracy of the planned giving records remains with your planned giving secretary. The tax refund will be received annually.
Frequently asked questions:
Do I have to give a regular amount each month?
We hope that you will continue to pledge an amount each week or each month But the benefit of the system is that once you have agreed that the church may collect tax paid, your permission may be applied to any gifts which you make to your church.
I took out a covenant recently. Do I need to sign anything else?
No, your covenant is perfectly valid for the period stated but because it will only cover donations up to the amount of the covenant, the Gift Aid Recorder may ask you to complete a new declaration.
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 to 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 Gift Aid Recorder knows about it and there is an audit trail.
What if I pay tax at more than the basic rate?
When you complete your annual tax return, the Inland Revenue 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 pay no tax?
You may not give under the Gift Aid scheme if you pay no tax. Remember, however, that if you receive interest on a bank of building society account net of tax or have paid capital gains tax, you have paid tax and are entitled to use the gift aid scheme.
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