IMPORTANT UPDATE gift aid is no longer processed via Diocesan House please register with HMRC and consider the benefits of the Parish Giving Scheme, details for both below.
Gift Aid Secretaries help to make a big difference to church finances.
Gift Aid allows churches to reclaim the basic rate tax on donations - boosting any donations from UK tax payers by 25%. This means that a gift of £10 from a donor is worth £12.50 to your church. Gift Aid applies to large and small donations – cash, cheque, standing order or direct debit.
The Gift Aid Small Donations Scheme (GASDS) also enables you to claim on small cash donations of up to £30 where it is difficult to obtain a Gift Aid declaration – meaning you can even claim on loose offerings, donations in non Gift Aid envelopes and donations made from a card or smartphone via a contactless device.
Gift Aid Secretaries are responsible for encouraging tax-effective giving, ensuring accurate records are kept and submitting regular claims to HMRC - therefore, it's important that they keep up to date with HMRC requirements.
You can read more about Gift Aid on the Church of England Website.
Parish Giving Scheme
The Parish Giving Scheme (PGS) is an established service for managing Direct Debit and One-Off giving and is designed to support churches with funding their mission and ministry.
The scheme eases the administrative burden on Gift Aid Secretaries and Treasurers. This is because payments are collected by PGS and parishes receive one monthly payment of all donations and regular payment gift aid received from HMRC. Along with the payments, PGS provides easy access to a breakdown of the donations and gift aid received. There is no charge to parishes for using the scheme, although any One-Off donations attract a 1.5% transaction fee.
Further information can be found on our Diocesan webpage Parish Giving Scheme, where you will be able to read the Guide for PCCs and An Introduction to the Parish Giving Scheme. There is also the Parish Giving Scheme website, where you will find a history of the scheme About us - Parish Giving Scheme and case studies from other Dioceses that have joined PGS - Testimonials.
Registering with HMRC
Claiming Gift Aid direct through HMRC can sound daunting, but please be assured that parishes who already claim Gift Aid direct from HMRC have said that they do not find this a particularly difficult task. We do believe that once you have registered and made your first claim you will find that it is not too complicated and it gives you more control over your cash flow.
Gift Aid is a scheme to support charities and HMRC’s focus is to provide this support. They understand that charities (especially PCCs) are often run by volunteers who may not have much formal accounting or administrative expertise. The HMRC Charities helpline: 0300 123 1073.
Resources
- HMRC Gift Aid Declaration checklist
- Step by step guide to registering with HMRC
- Introduction to registering as a charity with HMRC and making claims
- Gift Aid Declaration templates
Need more support? Get in touch
Our Finance Team are here to help with your queries. For all Gift Aid enquiries, please email us at generousgiving@diocant.org or contact Vicky Alford on 01227 459401.