Gift Aid

Gift Aid does not cost you anything, but does allow you to  increase the amount you give to the Annunciation  “free of charge”.  The Gift Aid scheme is for gifts of money by individuals who pay UK tax. Gift Aid donations are regarded as having basic rate tax deducted by the donor. The Church will take your donation - which is money you've already paid tax on - and reclaim the basic rate tax from HM Revenue & Customs (HMRC) on its 'gross' equivalent - the amount before basic rate tax was deducted. Basic rate tax is 20 per cent, so this means that if you give £10 using Gift Aid, it’s worth £12.50 to the church, an extra 25p for every £1 that you donate.

 

How to make a donation using Gift Aid

 

In order to make a Gift Aid donation you’ll need to make a Gift Aid declaration. A Gift Aid declaration must include:

  • your full name
  • your home address
  • the name of the charity
  • details of your donation, and it should say that it's a Gift Aid donation

An enduring Gift Aid form can be downloaded here, or can be obtained from the Church, and should be returned to the Annunciation. To be able to give this way You must  

  • be a UK tax payer  (either income tax or capital gains)
  • have paid an amount of Income tax and/or Capital Gains Tax in the tax year that is at least equal to the amount of basic rate tax the church and any other charities or Community Amateur Sports Clubs (CASCs) you donate to will reclaim on your gift.  The tax year is from 6 April one year to 5 April the next.
 

FREQUENTLY ASKED QUESTIONS

  Do I have to give a regular amount?                                  No. Gift Aid can apply to both regular gifts (e.g. monthly standing orders) and to “one off” gifts (e.g. the pink envelopes.)   Is there a maximum amount I can give?                Yes and No. The amount you can give depends on the tax you pay. You must consider your donations to the church in association with all other charitable donations you make during the year.  For example if you pay just £100 in tax a month, £1,200 tax a year, then you can give up to  £400 a month to charities and/or CASCs in Gift Aid;  since the tax recoverable on £400 a month at the basic tax rate is £100.  The test is that you must have paid, in a year, an amount of tax greater than the amount that the charities / CASCs are reclaiming in your name.  Anything over this wouldn’t be eligible for Gift Aid.    Does it cover loose cash in the collection?                                  No! The Inland Revenue requires all Gift Aid donations to be traceable back to the giver, e.g.  through standing orders, bank statements or completed gift aid envelopes.   What about “one off” gifts from visitors?             Very welcome. These are usually given in the church’s donation envelopes which have the declaration printed on them.   Does the Gift Aid declaration expire?                                No. No – there is no time limit on the declaration but you can cancel it at any time by contacting the church or the stewardship recorder.   What happens if I stop paying tax?                                    Just tell us. If you cease to be a tax payer you should notify the Gift Aid Secretary.  You can of course continue to make regular gifts to the church but they will not be under the Gift Aid scheme.   What if I am a higher rate tax payer?                     You win The parish may still claim the basic £2.50 for every £10 you give.  In addition when you complete your annual tax return the Inland Revenue will give you an allowance for the difference between the basic rate and the higher rate tax paid on your donation.
Please copy and paste this document and send it to the parish office keeping a copy for your records.

 

NOTES

1. Please notify the Annunciation if you:

  • Want to cancel this declaration
  • Change your name or home address
  • No longer pay sufficient tax on your income and/or capital gains. Gift Aid is linked to basic rate tax. Basic rate tax is currently 20%, which currently allows charities to reclaim 25 pence on the pound.

2. Higher rate taxpayers can claim back the difference between basic rate and higher rate or additional rate tax. If you pay Income Tax at the higher or additional rate and want to receive the additional tax relief due to you, you must include all your Gift Aid donations on your Self Assessment tax return, or ask H M Revenue and Customs to adjust your tax code.

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