• The name of the church – i.e. St Mary’s, Twindlington on the Rye
• The name of the donor
• The donor’s address and postcode
• The donation (s) to be covered by the declaration. Please note that Gift Aid can be backdated for donations made since 6 April 2000. Something like ‘I want all donations I’ve made since 6 April 2000 and all donations I make in the future to be Gift Aid donations until I notify you otherwise.
• The tax condition

Envelope Scheme
The Government's new Gift Aid scheme allows all churches and charities to reclaim tax paid on any donation made by a UK taxpayer. A Gift Aid envelope provides the ideal means for recovering that essential extra slice of income.

An envelope can be tailored for the occasional or one-off donation for people visiting the church. It should include all the wording necessary for reclaiming tax as outlined in the declaration. Once the simple declaration on the front is completed, the envelope becomes its own audit trail.

Two firms who specialise in providing giving envelopes are:

Envelope Systems
Gosforth Close, Sunderland Road Ind. Est.
Sandy, Bedfordshire SG19 1RB
Tel: 01767 681717 Fax: 01767 680260
Email:enquiries@envelopesystems.co.uk

Lockie Envelopes
Lockie Ltd, Haydock Cross, Killbuck Lane, St Helens WA 9XA
Tel 01942 726146 fax 01942 402509 ISDN 01942 721382
Website: www.lockiechurch.com

Claiming Tax from the Inland Revenue
If you are going to use Gift Aid for the first time, you need to contact the Inland Revenue so that they recognise your church for tax purposes and give you a reference number. The number to call is 0845 302 0203.

Inland Revenue Charities
St John’s house
Merton road
Merseyside
L69 9BB

Everything you need to know about using Gift Aid, for example the limited benefits you can give in return for a donation and the records you need to keep is explained on: www.inlandrevenue.gov.uk/charities/index.htm

Further information on tax efficient giving is available on: www.givingcampaign.org.uk

Keeping Records
The Church must keep sufficient records to show that tax reclaims are accurate. The receipt will enable the Church to show:

• An audit trail linking donation to an identifiable donor who has given a valid gift aid declaration.
• That all the other conditions for tax relief are satisfied.

NOTE If inadequate records are kept there will be a requirement to repay the tax with interest, also there may be a penalty.

The Inland Revenue will, from time to time, visit your parish and incumbent and audit to check all the parish records relating to giving and they will ask to see:

• The declarations
• The cashbook
• Paying-in stubs
• Bank records
• Credit card statements (if any)
• The envelope register
• The envelopes
• Correspondence between charity and donor
• Published literature
• The person who maintains records and makes the claim

Sample Donor Register

DONOR DATE OF DECLARATION METHOD OF PAYMENT WEEK 1 WEEK 2 WEEK3… WEEK 52 TOTAL
A.Non 04/07/00 Env (15) 2 4 2 104
A.Smith 01/05/00 Chq 25 45 300
A.Brown 31/05/00 Env (27) 6 4 5 212
Weekly Totals 27 6 8 52 616

Sample Standing Order Payment Control

DONOR STANDING ORDER APR MAY JUNE JULY…. MARCH TOTAL
F.Jones £10 p.m. 10 10 10 10 10
A.Green £25 p.q. 25 25
U.Pay £50 p. ½ year 50
Please note which week the standing order is paid to the parish.

If you are at all unsure about the records that you need to keep consult: www.inlandrevenue.gov.uk/charities/index.htm

Churches should make available for inspection all records to show that they have submitted correct repayment claims. There must be a clear audit trail from the donor through the books and records to the cash book and bank statements. All payments by cheque or cash on which the church wishes to claim under Gift Aid, should be recorded against that particular donor (or unique donor reference number if discretion is required). It should be then possible to follow that donation through to the cash book/bank statement. When payment is by Standing Order, there is no need to maintain records other than the bank statements, as these will identify the donor and the amount of their donation. If you have any queries about record keeping, please contact the Audit Unit on 0151 472 6129 for advice.

Please note that the Inland Revenue have the right to inspect six years, plus the current year, of your records, so you must keep six years records available for inspection. They are only likely to go back that far if they discover systematic errors which have repeated themselves over a period of time.

“It begins with me”

I would like to make a donation to ______________________________ (name of the church) using Gift Aid. My details are:

First name, Surname

Address

Postcode

I would like to Gift Aid the enclosed donation of £________________

I would like to Gift Aid all donations I’ve made to ________________(name of the church) since 6 April 2000 and all donations in the future until I notify you otherwise.

Notes: You must pay an amount of income tax and/or capital gains tax at least equal to the tax that the charity reclaims on your donations in the tax year (currently 28p for each £1 you give). You can cancel this declaration at any time by notifying the church treasurer. If in the future your circumstances change and you no longer pay tax on your income and capital gains equal to the tax that the charity reclaims, you can cancel your declaration. If you pay tax at the higher rate you can claim further tax relief in your Self- Assessment tax return. If you are unsure whether your donations qualify for Gift Aid tax relief, ask the church treasurer. Or ask your local tax office for leaflet IR 65. Please notify the church treasurer if you change your name or address.