Gift Aid enables basic rate tax to be reclaimed by charities registered with HM Revenue and Customs (HMRC) on donations they have received, subject to certain terms and conditions.
The Government offers us two schemes to help charities maximise their income. The Gift Aid scheme we are familiar with. The newer, Gift Aid Small Donation Scheme (GASDS) is a Government spending measure rather than a tax relief.
Sue Warren, the Diocesan Gift Aid Adviser, is here to help you understand and administer these schemes.
Gift Aid Lite
Gift Aid Lite is a parish support scheme – offering Gift Aid administration and support for churches.
The scheme is explained in the Information Sheet. The benefits of the scheme to your church are outlined in the Gift Aid Leaflet. To join up, please complete the Application Form after PCC ‘joining’ approval has been given.
Manchester Diocese also operates an ‘Audit Inspection Scheme’ in liaison with the HMRC, as well as providing training, assistance and updates for Gift Aid secretaries and treasurers. With our help and support there is no reason for your church to struggle with keeping up to date with its Gift Aid claims.
For help, further information or to join the scheme, please contact one of the team using the details below.
Gift Aid Small Donation Scheme
The Gift Aid Small Donations Scheme (GASDS) is intended to deal with small cash donations without the need for declarations. It should be viewed as complimentary to and not replacing the need for Gift Aid.
This scheme enables churches to claim back tax on loose cash donations without the need for any signed declaration from a donor. The scheme is subject to various conditions, but does increase your income.
The Small Donation Scheme can currently be used to claim tax relief on up to £8,000 of donations per year (a maximum of £2,000 tax relief). There are specific requirements for recording and vestry/cash sheets must be completed. It is essential to keep accurate audit trails.
The way claims are made and what can be claimed varies depending on whether you are a single church or have multiple churches. Appropriate tracker sheets are available to keep track of donations in your particular context. Please see the appropriate guidance below.
GASDS (Gift Aid Small Donations) – temporary changes!
“During the COVID 19 crisis HMRC would accept separate weekly envelopes containing £30 or less given when the Churches re open as eligible for GASDs. Alternatively, one envelope with a declaration which clearly states how much was being donated each week would also be eligible. For example: If a donor sends (say) £40 "to cover the next four weeks" then this would be eligible as £10 per week provided it is made clear (date provided for the weeks covered) that it is four separate donations in the same envelope.”
This can apply for any envelope donations received during lockdown as well.
Unfortunately, if these donations were given by cheque, Standing Order, BACS transfers, PayPal etc. they will not currently be claimable under GASDS.
It is essential that all planned giving envelopes are clearly marked as required by HMRC, and we suggest the full retention of these envelopes for the required six years.Audit trails should be maintained at all costs.
Please follow National Church and Diocesan guidance regarding collection of these envelopes during lockdown.
Planned giving envelopes given by those who have a current regular Gift Aid declaration are not affected and can be claimed in the usual way!Further information available from Susanwarren@manchester.anglican.org(0161 828 1424).
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