Section E. Support for PCCs and churchwardens
E12. Gift Aid
Changes in 2016
As a result of guidance from HM Revenue & Customs (HMRC), all parishes started to use new wording in all Gift Aid declarations signed after the beginning of 2016.
- The key change is that Gift Aid declarations must stress that donors must pay enough tax to cover all of their charitable donations and not just the donations made to a particular charity at a particular time.
- This will mean having a new declaration for Gift Aid envelopes, other one-off declarations and also enduring declarations accompanying regular giving. You may also need to change anything that is held on websites.
- Enduring declarations already held do not need to be changed, but the requirement that donors must pay sufficient tax to cover all their charitable donations still applies, (and has always been the case).
- As a reminder, any references to the amount reclaimed should be 25p for every £1 donated or 25%. Any references to reclaiming 28p for every £1 donated, or 28% are out of date and must be changed. 5. You should also check that any references to back claims are for four years, not the previous six.
HMRC’s revised wording sets out that:
- the donor must have paid enough Income or Capital Gains Tax to cover all of their charitable donations to charities in that tax year and it is the donor's responsibility to pay any difference.
- that other taxes such as Council Tax and VAT do not qualify Model declarations are offered using the revised wording for regular donations (overleaf), and for one-off donations and envelopes (below).
Diocesan Gift Aid Scheme
The diocesan office runs a Central Gift Aid Scheme which is available to all churches in the diocese. The scheme helps churches to maximise their income by making tax reclaims on their behalf on both their regular and pew donations.
This now includes the new Gift Aid Small donations Scheme (GASDS) which allows a Church to reclaim income tax on a further £5,000 net per year on all Open plate giving under £20 per donation. We do make a small charge for this service.
If you are interested in learning more about the central scheme or if you have any questions about the scheme you are running in your church please contact Alison Vincent, Gift Aid Officer.