GIFT AID - Frequently asked questions (FAQs)
Giving to charity through Gift Aid.
Gift Aid increases the value of your donations to St. Mary’s Cathedral by allowing the Cathedral to reclaim basic rate tax on your gift. St. Mary’s Cathedral can do this because it is a registered UK charity.
How much can the Cathedral claim back from the Inland Revenue (IR)?
The current basic rate of Income tax is 20 pence in the pound. If you earn £100 then you will pay £20 in tax. This leaves you with £80. If you give that £80 to the Cathedral then the Cathedral can reclaim the £20 tax that you have paid on it.
How does the Inland Revenue know how much tax to return to the Cathedral?
At the end of every financial year (5th April) the Cathedral Gift Aid Officer (GAO) submits a list to the Inland Revenue stating the name of all those parishioners who have signed Gift Aid forms. Against each name he states how much the Cathedral has received from the parishioner. Based on this list the Inland Revenue returns the tax paid to the Cathedral.
How does the Gift Aid Officer know how much each parishioner has given to the Cathedral?
The Gift Aid Officer has confidential access to the Cathedral bank statements. From these he can record all the Standing Orders and cheques given to the Cathedral over the year, add them up and submit the totals to the Inland Revenue.
What if I give my donation in a Gift Aid Envelope?
Again the Gift Aid Officer has confidential access to the Cathedral collection counters record book. In the book are recorded the envelope number and the donation given. Having a list of parishioners’ names and envelope numbers, the GAO is again able to submit a total to the Inland Revenue.
What if I give my donation as cash in the Collection plate?
As this donation cannot be traced to an individual person it cannot be counted in the donations submitted to the Inland Revenue for a tax refund.
Does the Inland Revenue check the validity of the information submitted by the GAO?
The Inland Revenue has the right to audit the list submitted by the GAO. The Inland Revenue has not taken up this option to date.
How does the GAO know that I pay enough tax for the IR to refund?
He doesn’t. It is your responsibility to ensure that you pay enough tax to cover the refund due on your donations.
How does the Inland Revenue know that I gift Aid my donations to the Cathedral?
A copy of your signed Gift Aid form is retained by the GAO and can be provided to the I Inland Revenue if they request it.
If you complete an annual tax return (not everyone has to) there is a section on Gift Aid that you must complete. In this section you must state how much you donated in the last year.
How do I know how much I donated to the Cathedral in the last year?
At the end of the tax year, normally in May, the GAO issues to every Gift Aider a letter which states the value of the donations recorded against their name in the Cathedral records.
If I pay higher rate tax (40 pence in the pound) can the Cathedral claim back the higher rate tax?
No.
If I pay higher rate tax (40 pence in the pound) can I claim back the higher rate tax?
You can claim back for yourself the difference between the basic tax rate of 20% and the higher tax rate of 40%. This comes to 20%. For example, if you donate £1000 after tax to the Cathedral they can claim back the basic rate tax (£250) and you can claim back the difference between the basic and the higher rate tax (£250)
How do I claim back the higher rate tax?
You have to complete the relevant section on your tax return.
Still confused?
In the first instance please contact the GAO for the Cathedral.
Telephone – 01224 584407
Email – stmaryscathedralfinance@gmail.com
For more information log onto the following website –
www.hmrc.gov.uk/individuals/giving/gift-aid.htm
or telephone Her Majesty’s Revenue & Customs –
HMRC Charities Helpline 0845 302 0203 between 8.00am and 5.00pm Monday to Friday.
You can download a Gift Aid Declaration Form and a Gift Aid Standing Order Form below. Just fill out the forms and return them to the Cathedral office marked for the attention of the Gift Aid Officer.
| gift_aid_declaration_form.pdf |
| File Size: | 15 kb |
| File Type: | pdf |
Download File
| gift_aid_standing_order_form.pdf |
| File Size: | 10 kb |
| File Type: | pdf |
Download File
