Did you know that you could help the parish financially if you pay any form of Income Tax?
The Gift Aid Scheme is simply a way that parishes can reclaim a refund of the tax that you have paid on the donations you make. Please take time to read and, hopefully, complete a Gift Aid Declaration.
Q: 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 tax payer and pay tax at either the basic or higher rate. Lower rate tax payers 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). Provided you pay at least £13.00 income tax per year you can donate £1 per week and the parish can reclaim £13.00. Your real donation to the parish is £65.
Q: Do I have to make my earnings known?
Q: 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 the parish 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.
Q: What if I stop paying income tax to the level the parish can reclaim (see table above)?
Answer. Let us know and we will cancel the declaration.
Q: 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.
Q: What methods of giving are allowed by the scheme?
Answer. Cheques, Standing Order or cash. If you give in cash, however, 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)
Q: What about High rate Taxpayers?
Answer. High rate tax payers will benefit through additional tax relief if they declare their Gift Aid Declaration on their tax return.
Q: How does the scheme work?
Answer. The standard rate of income tax is 20p in the pound. If a person earns £1.25 the tax payable is 25p (20% of £1.25). 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 Gift Aid Declaration, the parish can claim back the 25p. (The £1.00 has to be given in a numbered envelope which can be recorded – the number is allocated by the parish’s Gift Aid Organiser. An increasing number of parishioners are now paying regularly by Standing Order.)
Q: 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 for Gift Aid and Standing Orders are in the porch. Forms and information are also available from:
Mrs Linda Forster (parish Gift Aid Organiser) firstname.lastname@example.org
Father Jim Allen – Telephone: Tel: 01772 962776 or email email@example.com