Tax Credits

In theory, Tax Credits have nothing to do with our Gift Aid Schemes!

However, most churches will have members of their congregations who are claiming Working Tax Credits or Child Tax Credits - in fact statistics shows that 70% of families with children now qualify for tax credits. Those receiving tax credits should be encouraged to disclose their Gift Aid donations when advising their annual income as Gift Aid donations are deductible from their annual income and disclosing this might result in an increase in the benefit received!

As a Charity we should be advising our donors -
"If your family is claiming tax credits, make sure you tell the taxman about your gift aid donations, because most likely he will give you more money".

The claimant should complete the form Working Sheet for tax credit relief for Gift Aid donations (form TC825).

While these credits are in existence, it is good practice to remind donors annually, either as part of your donation acknowledgement letter, a note on your pew sheet or an article in your church magazine.

This might not increase the church's income, but in the current climate your donors will appreciate their donations costing them less and just might increase their contributions to you accordingly!