Charities Online New Gift Aid claim process

Guidance available

www.parishresources.org.uk/giftaid/

Three Gift Aid reclaim options

Paper ChR1 Claim Form + ChR1CS (Continuation sheet) Only available direct from HMRC Form will be handwritten, scanned and data extracted ChR1 - space for 15 Gift Aid donors + (6 Other taxed income items) + 2 Community Buildings + 5 Connected charities ChR1CS - space for 5 more extra Gift Aid donors Photocopies not acceptable Typed schedules & Covering letters not acceptable

Experience thus far OK for 20 or so donors Once a year With a glass of wine!

Questions around data – out of date postcode etc.

Online claiming Now live: • only charities registered with HMRC can access.

• must first register with Government Gateway on line • Activation PIN posted to authorised official • then need to go back to Gov’t Gateway and activate online service.

NB Old systems withdrawn from end September 2013 – so encourage parishes to make an interim claim on old R68i in July/August if not comfortable.

Online claiming • Needs spreadsheet of schedule • Download Office Libre, unless Excel 2010 or later.

• Can cut and paste (example offered on PR site).

Third Party Software route • A data file is created from a Gift Aid software package • Automatically submitted to HMRC via Government gateway • Format of data is checked (validated) and acceptance of data is acknowledged • Software solutions for the church include Donations Co-ordinator and FundFiler.

Charities Online New Small Donations Scheme

£1,250 extra each year for most parishes

Guidance available

www.parishresources.org.uk/giftaid/smalldonations/

In a nutshell…

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, tombolas, 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 made .

What counts…..

Loose plate Regular giving envelopes Where no Gift Aid declaration received

But when HMRC change their view….

You were right!

Communication isn’t going to be easy!

Are you • Single church parish • Multi church parish • In a Diocesan Gift Aid scheme which claims on a diocesan Gift Aid reference.

Limits

A parish with one church (or separate HMRC references for each church)…..

£5,000

……….claimed as a top up amount

What counts…..

Loose plate Wall safe donations Regular giving envelopes no Gift Aid declaration received Other genuine donations NOT raffles, tombolas, sales etc

Limits

A parish with more than one church…..

£5,000 for each church

……….but!!!

Up to £15,000 for “community buildings” Upto £5,000 as ‘top-up’ But £15,000 in total.

£5,000 limit for each Community Building, which includes churches, halls and schools. (separate guidance note) Must be used for charitable activities (e.g. worship or occasional offices) at least six times in a year, with at least ten people attending.

What counts towards Community Buildings part…..

Loose plate Regular giving envelopes no Gift Aid declaration received When 10 or more people in a service

What counts towards top up part…..

When 9 or fewer Loose plate Regular giving envelopes no Gift Aid declaration received Wall safe donations Other genuine donations NOT raffles, tombolas, sales etc

Limits

A parish in a diocesan Gift Aid scheme claiming on one diocesan Gift Aid number…..

£5,000

Community Buildings part…..

Loose plate Regular giving envelopes no Gift Aid declaration received When 10 or more people in a service

Potential for double claiming…..

Two pieces of evidence needed  Cash deposit slips from a bank branch in the UK showing at least the amount claimed under GASDS.

 Vestry forms which provides evidence of the donations that are eligible. Envelope register will split into Gift Aided donations and ones eligible for GASDS.

1. Vestry Record

2. Envelope record

GASDS and Charities Online

In the Diocese of Liverpool 28

Diocesan Gift Aid Scheme

   

235 churches. 92 on Diocesan Scheme Service provided:

  Declaration storage and checking, claims preparation, dealing with HMRC, Gift Aid secretary support and training, Gift Aid audits Fee = 5% tax

Claim under parish HMRC registration, parish = Authorised signatory, DBF = nominee DBF = agent under Charities Online 29

Communication

    

Diocesan email bulletin (c2500) From budget 2011 May, July, November, December 2012 Links to parish resources & HMRC December 2012: Briefing paper to all Gift Aid Secretaries 30

31

Briefing sessions

   

6 between March and June 210 people, 163 parishes. 72 unbriefed Practical exercises 2011 data:

  

All eligible matching 34% loose alone 73% if include OPG Briefed Unbriefed

Reactions/sticking points

      

Generally welcomed; some incredulity GASDS: concern Teller reaction Charities online: mixed Some Diocesan Scheme interest Not communicating Restrictions buildings element Changes in interpretation 32

Charities online

 

Since end May:



5 claims testing software & HMRC systems 15 direct claims 12 paid 33

PAYE & RTI

PAYE & RTI If you employ people, you need to be aware that reporting requirements have changed, and that you now need to tell HMRC in “real time”.

Information on Parish Resources site: www.parishresources.org.uk/people/paye/