The Gift Aid scheme allows taxpayers to give to charities and CASCs in such a way that some of the tax already paid by them can be claimed back and added to your giving.
No, not a penny! If you have already paid tax on earnings, pension, investment or capital gains, then all we are doing is getting some of that money back from the Government. At least then, we can be assured that some of the tax we have paid is going to a good cause.
With the basic tax rate at 20%, a gift of £10-00 increases in value to £12-50. The pennies do really make the pounds – overall, this could be worth several thousand pounds a year to CPM.
You need to be a taxpayer and pay enough income tax (at whatever rate) or capital gains tax in each tax year to cover the tax reclaimed on your giving.
Providing that tax has been paid on your gift, there are no lower or upper limits on how much you can give, however, when gifts are received through a Standing Order from a Joint Bank Account, or by a cheque issued from a Joint Bank Account, it must be made clear which of the named account holders/signatories is making the donation. If the person who signs a cheque drawn on a Joint Bank Account is not a tax payer, and, therefore, is not eligible to complete a valid GAD it means that we are unable to process the donation into a Gift Aid claim.
As often as you like – monthly, annually, in fact whenever you want – whatever is best suited to your needs.
Your gift must be traceable to you, so by cheque or standing order is the preferred method. If in cash, then it must be in a sealed envelope with your name on, providing a Gift Aid Declaration (GAD) has been completed by you.
Having made a gift, there is no legal commitment to continue. Just let us know if for any reason you need to stop, or if you change your address. Your commitment is solely between yourselves and the Lord.
Full confidentiality is maintained. Only HM Revenue & Customs (HMRC) and those who administer the scheme know who gives what. Details of gifts are not circulated to CPM Leadership.
You can enter details of your gifts on your tax return and claim the difference between basic and higher rate tax on your gifts.
If after starting to give via Gift Aid you cease to be a taxpayer or to pay enough tax, you should notify us so that we do not try and reclaim tax not paid. You would be liable to refund the Inland Revenue if too much tax is recovered.
Providing your gift was traceable (ie. by cheque, standing order or in a named envelope), your GAD can cover all gifts made in the last four years.
Your gift must be based upon tax you personally have paid. If both husband and wife pay tax, then both can give under the Gift Aid scheme and both need to complete a GAD. If tax is only paid by one, then the scheme is restricted to the tax-paying partner who has signed a Gift Aid Declaration. If a gift is made by cheque from a Joint Bank Account, and it is intended to be included as Gift Aid, it must be signed by the person who has signed the GAD.
Apart from the once-off declaration, and making sure we know who the gift is from, there is nothing else for you to do! We record your gifts and at the end of the tax year we will reclaim the tax paid on them. If you are a higher rate taxpayer then you should also keep a record of what you have given; you may find that useful when you complete an Income Tax return. What do I do now?
You must pay an amount of Income Tax and/or Capital Gains Tax which is at least equal, in total, to the tax that all Charities and Community Amateur Sports Clubs that you donate to reclaim on your donations in the tax year 6th April to 5th April.