Ian Gledhill HMRC (Charities) Liverpool Diocese of Wakefield 5 June 2010

Gift Aid Requirements There are still 4 main requirements for Gift Aid Donations (sum of money) must be made to a Charity. Donations must be from a UK taxpayer who has paid sufficient tax to cover. Charity must hold a valid declaration. Charity must be able to show receipt of donation.

Tax to cover example Individual’s donation £1,000 Charity claims £250 Donor’s tax - minimum £250

That tax can be Basic rate (currently 20%) 20% rate (rate deducted by Banks/Building Societies) 10% rate (non repayable tax deducted from dividend payments) Capital Gains Tax

Requirement 3 - Gift Aid declaration Declaration must contain Name of charity Name of donor Donors home address Description of payment(s)* Declaration that payment(s) are Gift Aided Note explaining that the individual must have paid sufficient UK income or capital gains tax to cover the claim Declaration

Gift Aid declaration Declaration must contain Name of donor Ideally, we would like to see:-Mr John Smith We will however accept the following combinations:- John SmithJ SmithMr J Smith. We will not accept:- Mr SmithSmithJohn Declaration

Addresses on GADs(i) 11, HD8 9QA or Dunroamin, HD8 9QA 11, Park Street, Goole, HD8 9QA 11, Park Street, Goole 11, Park Street, HD8 9QA YES 

Requirement 3 - Audit trail Audit trail from each Donor: and then into the Charity’s Bank account Through the Charity’s books & records

Sponsorship Gift Aid Charity: The HMRC Auditors Benevolent Fund Name of Participant: Andrew Kayley Event: The 2006 Birkenhead Marathon Full NameHome AddressAmount Total Please treat as Gift Aid Clark Kent21, Worthing Drive, Brighton BN4 1ZP £1 per Pub£26  Harry Potter6, Nottingham Close, Derby D4 2YP 50p per Pub£13 Bob the Builder14, CH2 1PY 50p per Pub£13  * you must pay an amount of UK income tax and/or capital gains tax at least equal to the tax that the charity reclaims for donation

Sponsorship Gift Aid claim – simplified procedure ParticipantDate of Payment Total Donation Received Stan Smith19/05/06£50.00 Andrew Kayley21/05/06£39.00 Jane Brown28/05/06£72.00 R68(NGA)

Charity Auction £40-00 £140 £100 Declaration

Charity Auction £200 £200-00

Volunteer’s Expenses Gift Aid

Charity Dinners The purchase of a ticket for Fund-raising Dinner / Charity Ball is not a Gift. Ticket costs £100 (includes £50 donation to Charity) - not a Gift. Ticket costs £50 & a donation of £50 is required - not a Gift. Ticket is £50 & a ‘suggested’ donation of £50 is requested - could be a Gift?

NOT Gifts The purchase of books, jumble sale items, bedding plants, food, alcohol etc Admission to events e.g. concerts, recitals etc. Golfing fees, Day Trips, Transport etc. Fees to adopt / re-home an animal Raffles, lottery tickets & 200 Clubs Non voluntary donations for school trips.

Time Limits for claiming Gift Aid From April 2010 A charity which is a Trust for tax purposes must make any claim within 4 years of the end of the tax year to which the claim relates. A charity which is a Company for tax purposes must make any claim within 4 years from the end of the accounting period to which the claim relates.

Further Advice Telephone HMRC (Charities) Help Line Gift Aid, Charity Tax returns, VAT queries, Trading & Community Amateur Sports Clubs (CASCs)

Website

Any Questions?