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1
Gift Aid Small Donations Scheme
February 2016
What will we cover?
• Details of the scheme
• How to take advantage of the scheme
• Questions
2
Gift Aid Small Donations Scheme
• Introduced in Budget 2011
• Small Charitable Donations Act 2012:became law on 19 December 2012
• Took effect from 6 April 2013
• GASDS orSmall Donations Schemefor short
3
The Small Donations Scheme
• Allows charities to apply for a Gift Aid style repayment
• On small cash donations of £20 or less
• Without the need to obtain Gift Aid Declarations for those donations
4
The Small Donations Scheme
• Can claim “top up” payment on small donations of up to £5000 per tax year
• Same rate as Gift Aid tax rate
• = top up payment of up to £1250 per tax year
• Applies to money received from6 April 2013
• From 6 April 2016, donations up to £8000 = top up payment of up to £2000
5
What is it?
• Not Gift Aid
• Not a repayment of tax
• Government spending measure
• Complements, doesn’t replace, Gift Aid
Health warning
• Some specific C of E issues to complicate things!
6
2
What is a small donation?
• Cash donation from an individual
• £20 or less
• Coins and notes (any currency!)
• Not cheques, Standing Orders, online giving, text giving
and
• Banked in UK
7
What can we include?
• Loose plate offerings
• Donations given in non Gift Aid regular giving envelopes – providing:
• Donation is £20 or less
• Not a cheque
• Not covered by a Gift Aid Declaration
• Only donations - not fundraising, other income
• No donations with benefits
8
Benefits to us
• Potential £244,000 for churches in the Diocese of Liverpool(based on 2014 figures)
• If £8000 limit applied to 2014 figures, potential for £343,000 for Liverpool
• £15 million parishes nationally
9
Rules, rules, rules
• Eligibility rules
• The matching principle
to prevent fraud.
• Connected charities
• Community buildings
for fairness.
10
Is my church eligible?
• Been registered with HMRC for tax purposes for at least 2 years
• Made a successful Gift Aid claim in 2 of the last 4 tax years
• Without a 2 year gap
• No HMRC penalty in the last 2 years
• Why?Good Gift Aid claiming record assures HMRC that the charity has appropriate internal processes
11
The matching principle
• Total Gift Aid donations must be at least 10% of potential GASDS, in tax year
• Ie £1 Gift Aid donations for £10 GASDS
• Need £500 Gift Aid donations to claim on full £5000 Small Donations (GASDS)
• Must make Gift Aid claim for donations received in same tax year as Small Donations
13
3
The matching principleFor example, from April 2016:
Income: Gift Aid £600 GASDS £8000
Claim: Gift Aid £150
14
GASDS £1500
• Because 10 x £600 = £600025% of £6000 is £1500
• Need £800 Gift Aid for full GASDS
• Or £15.38 Gift Aid per week
Connected charities
• Rules to ensure charities that operate in a similar way, but are structured differently, receive same entitlements
• The limit on which a charity can claim top-up payment may be reduced if a charity is connected with one or more charities
• Rule also to prevent fragmentation
• Connected charities share £5000 allocation
15
Community buildings
• Maximum donations limit can be increased for charities running charitable activities in a community building
• Couple of rules:
• At least 10 people meet in the same building at least 6 times a year
• People must be beneficiaries of charity
• For us, Community building = church
• For us, charitable activity = religiousservices
16
Community buildings
• £5000 GASDS allowance for each building
• Buildings must be separate
Buildings can include:
• Church
• Community hall
• School
17
Some buildings are excluded
Excludes buildings, or part, used wholly or mainly for residential purposes, or sale or supply of goods.
For example:
• Vicarage
• Residential care home
• Charity shop
18
But, these are single buildings:
• Buildings on same or adjacent land
• Church and church hall
• School with several buildings
• Church with a garden shed
Just one allowance of £5000 GASDS each
Think: Have you any other buildings you can include?
19
4
The Church of England position
Initially
• HMRC judged PCCs to be connectedcharities for the purposes of the scheme
• We all shared £5000 “Top up” allocation
• We could only claim on Community Buildings element of the scheme
What’s changed?
• HMRC now agreed PCCs not connected
20
What do you claim?
Are you:
• a single church parish?
Claim on the top up element of the scheme
OR
• a multi church parish?
Claim on the community buildings element of the scheme
21
Top up element - what do you claim?
Include small cash donations:
• loose offerings
• regular non gift aid envelopes
• in wall safes
• received outside the building, eg home communions
Up to a maximum of £5000 per tax year
22
Top up element - what can’t you claim?
Donations
• for tea/coffee
• for votive candles
• flower festival
• anything with a “benefit”
23
Buildings element - what do you claim?
• Up to £5000 for each separate church building
• Collected in the building
• During religious activity
• Only when 10 people present, at least 6 times a year
Include:
• Loose offerings
• Regular non gift aid envelopes
• Other donations in the buildingduring services
24
Buildings element - what can’t you claim?
Donations
• received outside the building
• in wall safes
• for tea/coffee
• for votive candles
• flower festival
25
5
Can you claim on both elements?
• The complicated answer! Yes, but…
• Have you reached £5000 per church?
• Yes – then claim no more
• No – ask: is the amount worth it?
• Records must clearly show which donations fit with which part of the scheme
• NEVER exceed £5000 per church – or nationally, C of E will lose concession
26
What records do you need?
HMRC require evidence
• Deposit slips of banked cash – in UK
• Should be more than GASDS amount
• Vestry forms showing eligible cash donations
• Date and evidence of numbers
• These should not be new!
• May need a little alteration
27
Simple vestry sheet example
28
St Somewhere's Church Date: ………………………………
Vestry Record Location: ……………………………………….
Attendance 10 or more? Y / N
Potential Gift Aid Small Donations SchemeInclude: loose plate offerings and donations
TOTAL
Notes £50
£20
£10
£5
Coins £2
£1
50p
20p
10p
5p
2p
1p
Total cash
Cheques
TOTAL
Signed ................................ and ................................
Eligible Not eligible
29National church: vestry sheet example
Regular Giving
Envelopes
One-off Gift Aid
Envelopes1
10 or more
attending? 3
No of Envelopes : No of Envelopes : Eligible for
GASDS
Not Eligible for
GASDS
Non-Donations4 TOTAL
Notes: £50
£20
£10
£5
Coins: £2
£1
50p
20p
10p or 5p
2p or 1p
TOTAL
Cheques
GRAND TOTAL
Signed and
St Agatha's Church, Anywhere
Vestry Record
Date: Open Plate and Non-Gift Aided
Donations2
Please complete this sheet in conjunction with the 'Vestry Record Notes' provided.
Your turn!30
On your offering plate:
£50 note
£20 and £10 note in rubber band
2 x £20 note
3 x £10 note
6 x £5 note
12 x £1 coin
5 x 50p
7 x 20p
11 x 10p
14 x 5p
10 x 2p
13 x 1p
Unmarked envelope containing £10 and £5 note
Cheque for £10
Envelope marked "Magazine" with 9 £1 coins
Exercise 1
32
Vestry procedure: best practice• Count immediately after service
• 2 people. Both to sign.
• Count loose offerings separately. Analyse cash.
• Separate Gift Aid & non-Gift Aid envelopes (if known)
• Mark envelopes with contents
• If cheque, mark envelope with “cheque”
• Balance total envelope cash with total on envelopes
• Total all offerings
• Record in Parish registers
• Reminder: Keep 1 month’s sample, marked contents
6
33
Gift Aid 07/04/2013 Chq 14/04/2013 Chq 21/04/2013 Chq 28/04/2013 Chq Total Apr
1 0.00
2 0.00
3 0.00
4 0.00
5 0.00
Total Gift Aid 0.00 0.00 0.00 0.00 0.00
Non Gift Aid
6 0.00
7 0.00
8 0.00
9 0.00
10 0.00
Eligible small
donations
Not eligible 0.00 0.00 0.00 0.00 0.00
TOTAL 0.00 0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 0.00
Name on Declaration = name on envelope list = taxpayer
Gift Aid 07/04/2013 Chq 14/04/2013 Chq 21/04/2013 Chq 28/04/2013 Chq Total Apr
1 10.00 10.00 10.00 10.00 40.00
2 25.00 50.00 25.00 100.00
3 30.00 15.00 15.00 60.00
4 60.00 60.00
5 10.00 10.00 10.00 10.00 40.00
Total Gift Aid 105.00 50.00 85.00 60.00 300.00
Non Gift Aid
6 5.00 5.00 10.00 20.00
7 20.00 Chq 40.00 20.00 80.00
8 5.00 21.00 26.00
9 2.00 2.00 5.00 Chq 2.00 11.00
10 3.00 1.50 1.30 1.50 7.30
Eligible small
donations
Not eligible 20.00 0.00 45.00 21.00 86.00
TOTAL 135.00 58.50 136.30 114.50 444.30
10.00 8.50 6.30 33.50 58.30
34
Gift Aid? 07/04/2013 Chq 14/04/2013 Chq 21/04/2013 Chq 28/04/2013 Chq Total Apr
1 Y 10.00 10.00 10.00 10.00 40.00
2 20.00 Chq 40.00 20.00 80.00
3 Y 30.00 15.00 15.00 60.00
4 Y 10.00 10.00 10.00 10.00 40.00
5 2.00 2.00 5.00 Chq 2.00 11.00
6 5.00 5.00 10.00 20.00
7 Y 25.00 50.00 25.00 100.00
8 5.00 21.00 26.00
9 Y 60.00 60.00
10 3.00 1.50 1.30 1.50 7.30
Gift Aid 105.00 50.00 85.00 60.00 300.00
Eligible small
donations
Not eligible 20.00 0.00 45.00 21.00 86.00
TOTAL 135.00 58.50 136.30 114.50 444.30
10.00 8.50 6.30 33.50 58.30
35
Your turn again!36
Gift Aid? 07/04/2013 Chq
1 Y 10.00
2 15.00 Chq
3 4.00
4 Y 5.00
5 25.00
6 5.00
7 Y 25.00
8 2.00
9 Y 60.00
10 3.00
Gift Aid
Eligible small
donations
Not eligible
(non Gift Aid)
TOTAL
Exercise 2
Example vestry sheet – part 138
St Somewhere's Church Date: ………………………………
Vestry Record Location: ……………………………………….
Attendance more than 10? Y / N
Gift Aid regular giving envelopes
Other regular giving envelopes
Other fund ………... regular giving envelopes
One-off Gift Aid envelopes (itemised elsewhere)
Other …………………………….
Other …………………………….
Other income ……….….………
Potential Small Donations Scheme (GASDS):
Loose offerings
Donations
Other (eg restricted donations) …………………………….
TOTAL
Offerings summary
Example vestry sheet – part 239
St Somewhere's Church Date: ………………………………
Vestry Record Location: ……………………………………….
Attendance 10 or more? Y / N
Potential GASDS
Eligible Not eligible All Other TOTAL
Notes £50 Notes £50
£20 £20
£10 £10
£5 £5
Coins £2 Coins £2
£1 £1
50p 50p
20p 20p
10p 10p
5p 5p
2p 2p
1p 1p
Total cash Total cash
Cheques Cheques
TOTAL
Cash breakdown
7
40Collections on: ……………………………….. Attendance 10 or more? Y / N
Include: loose plate offerings and donations 1 16 1
2 17 2
Notes £50 3 18 3
£20 4 19 4
£10 5 20 5
£5 6 21 6
Coins £2 7 22
£1 8 23
50p 9 24
20p 10 25
10p 11
5p 12
2p 13 Tot Tot
1p 14
Total cash 15
Cheques Tot
TOTAL
Gift Aid envelopes (1-15)
Other envelopes (16-25)
Mission envelopes
Loose money / donations - GASDS eligible
Loose money / donations - not GASDS eligible
Other ……………………………. Total cash
Other ……………………………. Cheques
TOTAL COLLECTIONS TOTAL
Signed …………………………………………… and ……………………………………………
1p
All Monies
Notes £20
£10The Gift Aid Small Donations Scheme (GASDS) only applies
to cash donations of £20 or less. £50 notes and cheques
should be recorded in the right hand column. Any donations
that are know n to be over £20 f rom an individual donor
(e.g. tw o £20 notes in an envelope, or secured w ith an
elastic band) should be recorded in the greyed cells.
£5
Coins £2
£1
50p
20p
10p
5p
2p
Eligible Not eligible
St Church on the Hill, Hillytown
Potential Small Donations Scheme Gift Aid Envs Other Envelopes Mission Envs
Example vestry sheet
41
42St Somewhere's Church
Location: ……………………………………….
Small Donations Scheme Tracker
DateOpen
plate
Non
Gift Aid
regular
envelopes
Non
Gift Aid
Other
donations
Total
07/04/2013 12.00 70.00 82.00
14/04/2013 32.50 50.00 82.50
21/04/2013 51.23 60.00 111.23
28/04/2013 45.12 30.00 75.12
05/05/2013 15.00 45.00 60.00
12/05/2013 16.00 25.00 5.00 46.00
19/05/2013 25.00 80.00 105.00
26/05/2013 34.70 50.00 84.70
02/06/2013 67.00 60.00 127.00
09/06/2013 56.00 23.00 79.00
16/06/2013 89.00 45.00 134.00
23/06/2013 52.00 89.00 141.00
30/06/2013 64.00 12.00 76.00
Total Qtr 1 559.55 639.00 5.00 1203.55
07/07/2013
14/07/2013
Claim date
Total Qtr 1 1203.55 08/08/2013
Total Qtr 2
Total Qtr 3
Total Qtr 4
TOTAL TAX YEAR 1203.55
Total GASDS Summary
Ensure sufficient Gift Aid donations for same period
What do you need to do?• Get the right recording procedures – now!
• Amend or add to your vestry sheet
• If needed, method for including regular giving envelopes (non Gift Aid)
• Decide which buildings – and find out address including postcode
• Claim 2013/2014 by 5 April 2016
• Keep claiming Gift Aid, regularly –including one-off Gift Aid envelopes. 25% guaranteed!
43
How do you claim?• Using the new(ish) claims procedure:Charities Online
• Diocesan Scheme parishes:
We will ask for additional information:
• Top up or community buildings claim?
• Confirm address of eligible buildings, where relevant
• Amount of GASDS in each building
• Otherwise, will claim as normal
• Non Diocesan Scheme parishes: next part
• Claim GASDS within 2 tax years
46
Claiming process
• Charities Online live from 22 April 2013
• Three options:
1. Claim using online form
2. Claim using own software database
3. Claim using a paper form
47
8
Option 3 – paper form
• For those who don’t have internet access
• Paper ChR1 replaced old R68i
• Order from HMRC
• Fill in by hand: one box per character
• For 15 donors (up to 90 with continuation sheets ChR1CS)
• Cannot use photocopies
• Automatically scanned by HMRC
48
Option 2 – software database
• Intended for more than 1000 donors, can be used for any number
• Claim directly from own internal database or system
• Software provider needs to work with HMRC to ensure compliance
• Check your software can do this
• You need to sign up to Charities Online
49
Option 1 – online form
• Up to 1000 donors per claim
• Sign up to Charities Online
• Log on to Government Gateway - once
• Enrol to use HMRC Charities Online
• Register and activate service
• Download schedule spreadsheets from HMRC
50 52
53 54
9
55 56
57 58
59 60
10
61 62
63 64
65 66
11
67
Gift Aid schedule spreadsheet
• Get the right software:
• Excel 2010 for Windows
• Excel 2011 for Apple Mac OS
• LibreOffice for Windows, Apple Mac, Linux
• Spreadsheet is in Open Document format: .ods
• Must use correct version for correct software, otherwise may not work when you claim
68
69 70
www.gov.uk/guidance/schedule-spreadsheet-to-claim-back-tax-on-gift-aid-donations
71
www.gov.uk/government/publications/gift-aid-schedule-spreadsheets-to-claim-back-tax-on-donations
Information required
72
12
73 74
www.gov.uk/government/publications/gift-aid-schedule-spreadsheets-to-claim-back-tax-on-
donations
75 76
77 78
13
79 80
81
Answer YES
Answer NO
Answer NO
For top up element
82
Answer NO
Answer YES
Answer NO
For community buildings element
83 84
14
About the organisation
• Name of Charity Regulator?
Either
• PCC registered with Charity Commission:Select: Charity Commission. Enter: Reg number
OR
• PCC not registered
Select: None
• Is claim being made by corporate Trustee?
Answer: No
85 86
87 88
For top up element
89For community buildings element 90
15
What do you need to do?
• Decide how you will claim
• Keep your PCC informed
• Check your Gift Aid donor information is correct – use Electoral Roll?
• Claimed GASDS 2013/2014?You must claim by 05/04/2016
• Concerned? Consider joining the Diocesan Gift Aid Scheme
91 92
Diocesan Gift Aid Scheme
• Existing system, provides continuity
• Declaration checking & storage
• Claims prepared
• Online claiming done for you
• Gift Aid secretary support
• Gift Aid audits
• Fee = 5% tax claim
More informationwww.liverpool.anglican.org/GASDS
Kim Stanley 0151 705 [email protected]
Resources Department 0151 705 [email protected]
www.parishresources.org.uk/giftaid/smalldonations
www.gov.uk/claim-gift-aid/small-donations-scheme
www.gov.uk/claiming-a-top-up-payment-on-small-charitable-donations
www.gov.uk/government/publications/charities-detailed-guidance-
notes/chapter-8-the-gift-aid-small-donations-scheme
0300 123 1073
93 94
www.liverpool.anglican.org/gasds
95
www.parishresources.org.uk/giftaid/smalldonations/
96
16
97 98
99
www.gov.uk/claim-gift-aid/small-donations-scheme
100
101
www.gov.uk/claiming-a-top-up-payment-on-small-charitable-donations
102
17
103
www.gov.uk/government/publications/charities-detailed-guidance-notes/chapter-8-the-gift-aid-small-donations-scheme
Summary• Cash donations £20 or less
• Not covered by Gift Aid declaration
• For community buildings:
• Given in the building
• During religious service
• 10 or more people
• Maximum £5000, soon £8000, per church
• Banked in UK, more than GASDS amount
• Demonstrate all the above
• Claim 2013/2014 by 5 April 2016
104
… to manage church finances• Thursday 9th June 2016 All Saints, [email protected]
• Wednesday evening, 19th October at St Francis of Assisi, KittGreen, Wigan @7.00pm
• www.liverpool.anglican.org/finances
• Technical updates on accounts and Gift Aid
• New resources available
• Guidance for new treasurers and Gift Aid secretaries
• Workshops: Friends, legacies, digital giving, Parish Giving Scheme
• Soul food for all engaged in finance and stewardship in the local church
Gives us your feedback at: www.liverpool.anglican.org/MIEFeedback