Did you know that you could help the parish financially if you pay any
form of Income Tax?
I'll try and explain what is involved as simply as possible.
Please take time to read and hopefully complete a Gift Aid declaration.
The Gift Aid Scheme is simply a way that parishes can reclaim a refund of
the Tax that you paid on the donations you make.
Question. How much Income Tax must I pay to be
able to take part in Gift Aid?
Answer. You can join the Gift aid scheme if you are
an Income Taxpayer and pay tax at either the basic or higher rate. Lower rate
Taxpayers including those paying Tax on pensions, savings and investments can
also join, providing they pay an amount of tax at least equal to the amount of
any refund claimed by the parish (see table below). Therefore provided you pay
at least £14.67 Income Tax per year you can donate £1 per week. The parish can
reclaim £14.67.
| If you give each week |
This amounts to each year |
Income Tax reclaimed by the parish |
Total real donation to parish |
| £1.00 |
£52.00 |
£14.67 |
£66.67 |
| £3.00 |
£156.00 |
£44.00 |
£200.00 |
| £5.00 |
£260.00 |
£73.33 |
£333.33 |
| £7.50 |
£390.00 |
£110.00 |
£500.00 |
| £10.00 |
£520.00 |
£146.67 |
£666.67 |
| £20.00 |
£1040.00 |
£220.00 |
£1333.34 |
Question.
Do I have to make my earnings known?
Answer. No
Question.
What if I have already signed a covenant?
Answer. Your existing covenant will continue to be
valid for the covenanted amount and payments will continue to be
collected and nothing further is needed to enable us to recover the tax.
However, if you wish to increase the amount of giving to the parish and wish the
parish to benefit, you will need to complete a Gift Aid Declaration. We
would therefore ask any taxpayer to seriously consider completing a new Gift Aid
Declaration (even if they already have a covenant).
Question.
Can I change the amount I give?
Answer. Yes. You can increase or decrease the
amount you give at any time without having to complete a fresh declaration. Gift Aid allows us to reclaim tax on all amounts given, including irregular,
one-off payments (no matter how small, or large). It also means that where
existing covenanters give more than they have covenanted we can make reclaims on
the extra amounts.
Question.
What if I stop paying Income tax to the level the parish
can reclaim (see table above)?
Answer. Let is know and we will cancel the
declaration.
Question.
Is the Gift Aid confidential?
Answer. Yes. The parish has to keep accurate
records of receipt, but only our parish organiser has access to details.
Question.
What methods of giving are allowed by the scheme?
Answer. Cheques, Standing Order or
Cash. However, if you give in cash, it needs to be put in a numbered envelope so
there is a proper 'audit trail'. (Please note that the amount you give is
confidential as the cash counters do not know to whom the envelopes belong)
Question.
What about High rate Taxpayers?
Answer. High rate Taxpayers will benefit through
additional tax relief if they declare their Gift Aid Declaration on their tax
return.
Question.
How does the scheme work?
Answer. The standard rate of Income Tax is 22p in
the pound. If a person earns £1.28 the tax off is 28p (22% of £1.28). This
leaves the person with £1.00 "in the pocket". If the £1.00 is then given to the
Church, and the parishioner signs a New Gift Aid Declaration, the parish can
claim back the 28p. (The £1.00 has to be given in an envelope which can be
recorded. An increasing number of parishioners are now pay regularly by standing
order.)
Question.
What about couples?
Answer. A Gift Aid Declaration can only be made in
the name of an individual parishioner since Income Tax is claimed back against
his or her own tax. If both spouses pay tax they may wish to make separate
Declarations for the amounts that they give and must then use their own numbered
envelopes or separate banker's order. This enables accurate records to be kept.
Please join the Scheme at the
earliest opportunity. Forms and information available from our parish organiser Toni Garrington
or the Diocesan
Gift Aid Office (Tel: 0191 2433306, Fax: 0191 2433309)
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