Transcript Slide 1

Opening
Prayers
Introductions
• Jan Boyce,
Diocesan Accountant,
Diocese of Llandaff
• Richard Jones, Parish
Resources Adviser,
Diocese of Llandaff
Contents
• Gift Aid – The Story
• The new Gift Aid Claims Process
• Gift Aid Small Donations Scheme
Q:
What was the total
amount of money
claimed by Church in
Wales Parishes during
2012 through the Gift
Aid scheme?
Find the correct answer ! ...
A:
£1.2m
C:
£0.8m
B:
£2.8m
D: £1.9m
A:
£2.8m
Q:
How much on
average is that per
church?
Find the correct answer ! ...
A:
£3400
C:
£1100
B:
£1800
D: £2020
A:
£ 2020
Q:
The total amount of Gift Aid claimed
by Church in Wales Parishes during
2012 was £2.8m. This sum is the
equivalent cost of funding how many
full time stipendary ministry posts in a
year?
Find the correct answer ! ...
A:
22
C:
68
B:
29
D: 40
A:
68
Q:
If £25.00 per £100.00 of income
(excluding grant income) is the
maximum amount of Gift Aid that can
be claimed each year, on average how
much do Church in Wales Parishes
claim?
Find the correct answer ! ...
A:
£16.76
C:
£9.76
B:
£24.13
D: £19.14
A: £19.14
How do we claim it?
When does Gift Aid Apply?
• Gift Aid only applies to gifts of money from
individuals who are UK taxpayers.
• People are often ‘tax payers’ even if often
they think they aren’t!
• Remember that the tax status of individuals
can change. The donors responsibility, but
good practice can help...
.
When does Gift Aid Apply?
• Gift donation of ‘goods’ to be sold for the
charities benefit can be Gift Aided, but full
records of the donor, the related donation and
the connected sale and value of sale have to
be kept. Usually felt to not be worth the effort
for the average church fete or fayre, especially
when on a lot of these occasions it is the same
people buying other goods off each other!
.
When does Gift Aid Apply?
• Sponsored events or activities can be subject
to Gift Aid, as long as your collecting /pledge
sponsor form includes the requirements of a
Gift Aid declaration, usually with a ‘one off’
statement of Gift Aid declaration appearing
once on the form and a ‘tick box’ Gift Aid
option against each donor entry.
• HMRC template at
http://www.hmrc.gov.uk/charities/appendix_
b2.pdf
The Evidence required
• All Gift Aid claims must be supported by a
sound audit trail so that the church can prove
the claim was valid. Complete records for each
donation must be kept safely for at least 6 full
tax years after the donation, and these records
must include valid Gift Aid Declarations
covering all donations. (6 years after the last
donation, if an ‘enduring’ declaration)
The Evidence required
• Declarations can either take the form of:
• Enduring declarations (“until further notice”)
• Or ‘One off’ declarations usually in the form of
a printed envelope.
The Evidence required
• Ensure that declarations carry the latest
wording as required by HRMC (last revised 2012)
• Destroy any old unused forms or envelopes
• Declarations that you hold carrying previous
wording do not need to be replaced and are
still valid
The Evidence required
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Gift Aid Declaration for Regular Giving
NAME OF CHURCH __________________________
If you are a UK taxpayer and eligible to Gift Aid your donation, please complete the form below and give it to
one of the church staff or post it to [Parish Office address/ Gift Aid officer’s /Treasurer’s address]. This will
increase your gift by 25p for every £1 given (at current rate), at no extra cost to you or us. Thank you.
Please treat as Gift Aid donations all qualifying gifts of money made from the date of
this declaration and in the past four years.
I confirm I have paid or will pay an amount of Income Tax and/or Capital Gains Tax for
each tax year (6 April to 5 April) that is at least equal to the amount of tax that all the
charities (including churches) and Community Amateur Sports Clubs that I donate to will
reclaim on my gifts for that tax year. I understand that other taxes such as VAT and
Council Tax do not qualify. I understand the charity will reclaim 25p of tax on every £1
that I give.
Full Name: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Address (including postcode): _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Postcode: _ _ _ _ _ _ _ _ _ _ _ _
Signature: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Date: _ _ _ _ _ _ _ _ _ _ _ _
…………………………………………………………………………………………………………………………………………………………………………………………………..
NOTES
1. Please notify the church/charity 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 HM Revenue and Customs to adjust your tax code.
The Evidence required
How do we claim it?
There are 3 ways to claim:
1. Paper ChR1 form
2. Online
3. Commercial Software
Option 1:Paper Claim ChR1
•Only available direct from
HMRC (cannot use
photocopied forms)
•MUST be completed by HAND
•Only really practical for
smaller PCCs (with 30 donors
or fewer) making annual claims
•Can be used for GASDS too
•Basic form allows claim for up
to 15 donors
•Continuation sheets allow up
to 6 more per sheet
Option 2:Online Claim
•Only charities registered
with HMRC can access the
system
•MUST register with
Government Gateway online
•Activation PIN is sent to
authorised official
•Re-enter Government
Gateway to activate on-line
services
https://online.hmrc.gov.uk
Online Claim: Software
•Schedules need to be in Open Document Format
•Need to have either Microsoft Excel, or Libre Office (available for
free download)
•Proformas available from HMRC website or Parish Resources
www.hmrc.gov.uk/charitiesschedules/giftaid.htm
Online Claim
•More details required
•You can enter aggregated donations of £20 or less up to total
£1,000 per row
www.hmrc.gov.uk/charitiesschedules/giftaid.htm
Making the Claim
•Log into the Government Gateway
•Access Charities Service – Make a charity repayment claim
•Ensure guidance followed with type of claim you are
making, some of the questions are answered differently
from what you would expect!
•Complete organisation details
•Attach spreadsheets – system will verify data submitted in
correct format
•Submit claim
www.parishresources.org.uk/giftaid/claiming/
3. Third party software
3. Third party software
• All too much!?
There is
another way...
NEW!!!! GASDS
GASDS
GASDS - Eligibility
PCCs, or charities registered for Gift Aid with HMRC,
are able to use the scheme if you have:
• existed for at least 2 complete tax years before
the year you want to claim for.
• made a successful Gift Aid claim in at least 2 of
the previous 4 tax years without a gap of two or
more tax years between those Gift Aid claims or
since the last claim was made.
• not incurred a penalty relating to a Gift Aid or
GASDS claim in the current or previous tax year.
GASDS – What Counts?
To be eligible, donations must be small cash donations:
• small – donations of £20 or less,
• cash – in coins or notes. Standing orders, cheques, text or
online giving etc are not eligible,
• giving/donations only. Money from raffles, tombola's,
sales and other income that would not qualify for Gift Aid
cannot be included in the scheme.
• From individuals, received in the building, and on which
no Gift Aid claim has been or will be made.
• Cash collections received during services will initially be
the most common examples of qualifying donations for
churches.
GASDS
Community Buildings Element
GASDS
Conditions apply! ...
GASDS
GASDS
• Cash donations only
• Single gifts of £20.00 or less
GASDS - Evidence
HMRC require you to keep three pieces of evidence, none of
which should be a new requirement:
1. To be eligible, Small Donations must be banked at a bank or
post-office branch in the UK. You must keep evidence which
shows at least the amount claimed under GASDS was
deposited.
2. Vestry forms showing the cash collected at services, which
provides evidence of the donations that are eligible. These
should be signed. An example form, with accompanying
notes, is available in both Word and Excel format at
www.parishresources.org.uk/giftaid/smalldonations/
3. Evidence of the numbers attending a service, which will
usually be your service register.
GASDS
• Claims via GASDS must be made within 2
years of the donations being made
• Claims can be made at any time, but must
relate to a single tax year period (i.e. Claims
for a calendar year should be split January to
March inclusive and April to December
inclusive).
• From April 2013
Online Claim
•Community Buildings you need to enter the
address of each of your churches (community
building) together with the postcode
•Enter amount of donations received in that
building which qualify
www.hmrc.gov.uk/charitiesschedules/giftaid.htm
GASDS
• ‘Top – up’ element is excluded from
GASDS for churches within the Church
in Wales & Church of England at the
current time. This situation is subject
to an on-going dispute with HMRC
about church structure and matters of
‘connectedness’ and is expected to
change at a future date. Until such
times churches must only claim on a
‘community Buildings’ element for
each
church
within
their
benefice/parish.
GASDS
We have a church
plant – does it count
as a ‘Community
Building’?
Can we only include
small donations
received at services
with more than 10
people?
How will I know
whether say, a £20
note and a £10 note
are part of the same
gift?
GASDS - FAQs
Can we count cash
donations given in a
wall safe by visitors?
What about collections
received which will be given
to other charities e.g.
Christingle?
Does this
remove the
need for oneoff Gift Aid
envelopes?
Tips to Maximise Gift Aid
1.
2.
3.
4.
Promote Gift Aid whenever you request donations.
Encourage higher rate taxpayers to maximise their Gift Aid
Make sure everyone working for the church understands Gift Aid
Give some easy examples about what the extra money will allow
your church to do.
5. Appoint a Gift Aid officer who will be able to answer all queries
and focus specifically on increasing the church’s use of Gift Aid.
6. Contact donors who haven’t given you a Gift Aid declaration,
explain the benefits of Gift Aid and ask them to make a
Declaration.
7. Include Gift Aid reclaims in your fundraising targets and reports
8. Put tax-effective giving on your PCC agenda each year
9. Make sure you have reclaimed tax on all eligible donations
received
10. Ask for cash – not goods or gifts and use Gift Aid!
HELP AVAILABLE
•Your Questions....