GIFT AID SCHEME

If you would like to increase the amount of your weekly donations to the Parish through the Gift Aid Scheme, please take a box of envelopes for the coming year and mark your name and address (please include the postcode) against the number of the envelopes which you have taken. Canon will contact you to arrange for you to sign a form confirming that you wish to participate in the Gift Aid Scheme and, at the end of the year, the Inland Revenue will refund the tax you have already paid on your donation to the Parish.
Please read the information below, which explains how the scheme works.
If you have any other questions, please contact Canon McBride.


Giving Giving to the Parish through Gift Aid
Gift Aid increases the value of donations to the Parish by allowing us to reclaim basic rate tax on your weekly donation. If you pay higher rate tax you can claim extra relief on your donations. If you claim age-related allowances or tax credits, Gift Aid donations can sometimes increase your entitlement.

How Gift Aid Works
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 Parish takes your donation – which is money you’ve already paid tax on – and reclaims the basic rate tax from HMRC on its ‘gross’ equivalent – the amount before basic rate tax was deducted. Basic rate tax is 20%, so this means that if you give £10 using Gift Aid, it’s worth 12.50 to the Parish. For donations between 6 April 2008 and 5 April 2011 the Parish will also get a separate government supplement of three pence on every pound you give.

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. You will be asked to complete a simple form – one form can cover every gift made to the Parish for whatever period you choose, and can cover gifts you have already made and/or gifts you may make in the future.

Making sure you’ve paid enough tax to use Gift Aid
You can use Gift Aid if the amount of Income Tax and/or Capital Gains Tax you’ve paid in the tax year (6 April one year to 5 April the next) in which you make your donation is at least equal to the amount of basic rate tax the charity is reclaiming on your gift. If you make a number of Gift Aid donations, you will need to consider the tax you’ve paid on each donation on an accumulative basis. If you don’t pay enough tax you may be required to pay any shortfall in tax to HMRC.
Tax you’ve paid could include:

  • Income Tax
  • Tax on State Pension and/or other pensions
  • Tax on investment or rental income
  • Tax deducted at source from savings interest
  • Capital Gains Tax on gains

But only UK tax counts, so if you only pay tax outside the UK you won’t be able to use Gift Aid.

How to check if you’ve paid enough tax
To work out if you’ve paid enough tax to cover your donations, divide the donation value by four. For example, if you give £100 in a particular tax year you will need to have paid £25 tax over that period (£100/4=£25). Note that this calculation is based on the basic rate tax of 20%.

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