This note relates only to matters that are relevant to the Essex Association of Change Ringers, it is therefore not a comprehensive guide to the gift aid provisions. If anyone would like further details, please do contact me.
Gift Aid and Declarations
How can I sign up for Gift Aid?
All you need to do is to download and complete our gift aid declaration (updated March 2016).
How does Gift Aid work?
Gift Aid is one of the easiest ways to make your donation tax effective. The charity you are supporting reclaims the basic rate tax from HM Revenue and Customs. There is no extra cost to you and the process is simple - all you have to do is make a Gift Aid declaration.
What does the Gift Aid declaration commit me to?
For every £1 you donate to the Association in a financial year (from 6 April to 5 April of the following year), you must have paid 25p in Income or Capital Gains Tax in the same financial year to qualify for Gift Aid.
If you have made a Gift Aid declaration we ask that you let us know if you cease to pay enough Income Tax and/or Capital Gains Tax to cover the amount we will claim from HM Revenue and Customs on the donations you make.
We also ask that you let us know if you change your name and/or address.
What is a Gift Aid declaration?
It is simply a statement by an individual taxpayer that they want a charity to claim from HM Revenue and Customs the tax paid on their donation. This is a great way to add 25 per cent to the value of your subscription or donation to the Association without it costing you a penny more!
Gift Aid - do I qualify?
You must pay an amount in Income Tax and/or Capital Gains Tax to cover the amount the Association and any other charities or Community Amateur Sports Clubs (CASCs) will reclaim in the tax year (from 6 April to 5 April of the following year).
Inheritance Tax, Council Tax and VAT do not qualify towards Gift Aid.
How do I know if I pay UK income or capital gains tax?
You pay these taxes if:
- Income Tax is taken from your wages or salary before you receive your pay
- you pay tax after filling in a self-assessment form each year
- you have any taxable savings (in a Building Society, for instance), or a pension plan, or investment income
- you have paid any Capital Gains Tax, on the sale of a property or some shares, for example.
Inheritance Tax, Council Tax and VAT do not count as Income or Capital Gains Tax.
Why does it work out at 25 pence for every pound given?
Although basic rate tax is currently 20 per cent, the donation for £1 is treated as the net after tax from £1.25 (£1.25 minus 20 per cent is approximately £1). The Association gets back the 25 pence.
What if I don't pay UK tax?
Then, unfortunately, you are not able to make a Gift Aid declaration. If you want us to make a note of this on your records, please let us know by contacting us (see paragraph 21 below).
What if I'm a pensioner?
You may still pay tax on a private pension plan or a savings account, or pay Capital Gains Tax if you sell property or shares. If this is the case, please tick the Gift Aid declaration.
What if I'm a higher rate taxpayer?
The Association can only directly claim back at the basic rate but please complete and return the declaration. As a higher rate taxpayer, if you declare your donations on your tax return, you can claim a rebate based on the difference between the higher rate and the basic rate when you fill in your self-assessment form.
What if I'm a lower rate taxpayer?
If you pay a lower rate (10 per cent or 20 per cent), the Association can still claim back 25p for each £1 you donate, provided you pay enough tax to cover the claim in the tax year you make the gift(s).
What if I make my donations via CAF (the Charities Aid Foundation)?
If you normally make donations via CAF, tax has already been reclaimed. However, please fill in the declaration anyway so that any separate donations you might make are tax effective as well.
What if I buy raffle tickets?
Purchases such as raffle tickets are not treated by HM Revenue and Customs as donations and so the Gift Aid declaration does not apply to them. However, please fill in the declaration to cover any additional or separate donations.
Can Gift Aid be applied to events sponsorship?
Yes, in most cases - please see sponsorship forms for more details. If you are being sponsored or sponsoring someone else please Gift Aid eligible contributions. Remember that each sponsor needs to include their home address and postcode to enable the Association to reclaim the tax.
How long does the declaration last?
To simplify matters for both you and the Association, the declaration wording normally covers past, present, and future donations. We can back-claim four years and we will continue to claim until you tell us otherwise, so long as you are eligible.
Payroll Giving or Gifts of Listed Shares and Securities
Please ask me for further details of how you can make donations under this scheme.
Giving to Charity through your tax return
If you complete a self-assessment tax return you can donate all or a percentage of a tax repayment owed to you to the Association. Providing you have paid enough you can ask that HMRC automatically Gift Aid to your self-assessment donation, thus ensuring that your gift goes further to supporting the Association.
Self Assessment Giving has a number of advantages:
- It offers an easy way to donate your tax refund to the Association
- The Association receives your donation (plus any Gift Aid) directly into its bank accounts without having to make the claim to HMRC
- You can increase the value of your repayment by ticking the relevant box on your tax return to ensure that Gift Aid is automatically added to your donation.
How do I donate to the Association via my tax return?
If you file your tax return online or through the post you can select the Association to receive either all or part of your tax repayment by completing the Giving your tax repayment to Charity form, which will have been sent to you in your tax return pack.
When completing your form the code for the EACR is SAE63XG.
Once HMRC have calculated your tax repayment, they will send you a calculation showing how much your repayment is and when it was sent to the Association.
How do I add Gift Aid to my donation?
If you want to ensure that the Association receives any Gift Aid that is due on your donation, please tick the relevant box on the form titled Giving your tax repayment to Charity Form or when promoted if you are filing your tax return online.
HMRC will then automatically add any Gift Aid that is due on your donation, when they send your repayment to the Association.
Please note in order for your tax repayment donation to be Gift Aided you must have paid at least as much tax as the Association will receive from your gift.
Who will have access to this information about me?
Only the Association and HM Revenue and Customs. We will not share it with anyone else.
What should I do if my tax status changes or I want to cancel my declaration?
Please let us know by contacting us in one of the following ways:
- Telephone: 01245 421166
- Write to us at:
16 The Priory
If you have any questions or would like further details, please do not hesitate to contact me (details in the Annual Report or Contacts page of the website).
29 November 2013
Instructions for completion of the GIFT AID declaration
Please download the declaration, complete the various sections, sign it, and then send the completed form to me at 16 The Priory, Writtle, Essex CM1 3JE.
Via the Internet
Please download the declaration, complete it and return it to me as an email attachment, or copy the whole of the wording and other details into the main body of an .
When you speak or telephone me (my number is 01245 421166) please let me have all the details as set out in the formal declaration:
- first and last name
- address including house number, house name and postcode)
- details of the payments to be covered by the declaration. For example - “all payments I make to the charity from the date of this declaration until I notify you otherwise”.
Gift Aid Downloads
Adobe pdf (updated March 2016)