1 What will we cover? 2 Gift Aid Small Donations Scheme Details of the scheme How to take advantage of the scheme How to claim: non Diocesan Scheme parishes Questions March 2018 Gift Aid Small Donations Scheme 3 The Small Donations Scheme 4 Introduced in Budget 2011 Small Charitable Donations Act 2012: became law on 19 December 2012 Took effect from 6 April 2013 Changes from 6 April 2017 GASDS or Small Donations Scheme for short 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 The Small Donations Scheme Can claim top up payment on small donations of up to 8000 per tax year Same rate as Gift Aid tax rate = top up payment of up to 2000 per tax year Up to 5 April 2016, donations up to 5000 = top up payment of up to 1250 5 What is it? Not Gift Aid Not a repayment of tax Government spending measure Complements, doesn t replace, Gift Aid Based on tax year, not financial year Must claim within 2 years from end of tax year Health warning - some specific C of E issues to complicate things! 6 1
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 From 6 April 2017: contactless donations by debit card/credit card/app (but not chip and pin) and Collected 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 Rules, rules, rules Eligibility rules The matching principle to prevent fraud. Connected charities Community buildings for fairness. 10 Is my church eligible? #1 Claims for donations to 5 April 2017: 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 Is my church eligible? #2 Claims for donations from 6 April 2017: No HMRC penalty in the last 2 years 13 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 800 Gift Aid donations to claim on full 8000 Small Donations (GASDS) Must make Gift Aid claim for donations received in same tax year as Small Donations 14 2
The matching principle For example, from April 2016: Income: Gift Aid 600 GASDS 8000 Claim: Gift Aid 150 GASDS 1500 Because 10 x 600 = 6000 25% of 6000 is 1500 Need 800 Gift Aid for full GASDS Or 15.38 Gift Aid per week 15 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 8000 allocation 16 Community buildings Maximum donations limit can be increased for charities running charitable activities in a community building To qualify - 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 = religious services 17 Community buildings 8000 GASDS allowance for each building ( 5000 to 5 April 2016) Buildings must be separate Buildings can include: Church Community hall School 18 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 Supermarket 19 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 8000 GASDS each Think: Have you any other buildings you can include? 20 3
21 22 The Church of England position What element do you use? Initially Are you: HMRC judged PCCs to be connected charities for the purposes of the scheme We all shared 8000 Top up allocation a single church parish? Claim on the top up element of the scheme We could only claim on Community Buildings element of the scheme OR What changed? HMRC agreed PCCs not connected a multi church parish? Claim on the community buildings element of the scheme 23 24 Top up element - what do you claim? Buildings element - what do you claim? Include small cash (& contactless) donations: loose offerings regular non gift aid envelopes in wall safes received outside the building, eg home communions Up to a maximum of 8000 per tax year ( 5000 to 5 April 2016) Up to 8000 for each separate church building ( 5000 to 5 April 2016) But What you include depends when donations were received: Up to 5 April 2017 (tax year 2016/2017) or From 6 April 2017 (tax year 2017/2018) Buildings element you can claim: to 5 April 2017 Small cash (and contactless) donations 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 building during services 25 Buildings element you can t claim: to 5 April 2017 Donations received outside the building in wall safes 26 4
Buildings element you can claim: from 6 April 2017 Include small cash (& contactless) donations loose offerings regular non gift aid envelopes in wall safes received outside the building, eg home communions, collected in the Local Authority Area of the building 27 Buildings element from 6 April 2017 Donations collected in each building must be allocated to that building Donations collected outside the building, can be allocated to any of your eligible buildings in that Local Authority Area: Record location donations collected To show donations collected within the Local Authority 28 30 31 Both elements - what can t you claim? What records do you need? Donations for tea/coffee for votive candles flower festival anything with a benefit 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 for buildings These should not be new! May need a little alteration Simple vestry sheet example St Somewhere's Church Date: Vestry Record Location:. 32 National church: vestry sheet example St Agatha's Church, Anywhere Vestry Record Date: Regular Giving Envelopes One-off Gift Aid Envelopes 1 Open Plate and Non-Gift Aided Donations 2 10 or more attending? 3 33 Attendance 10 or more? Y / N Potential Gift Aid Small Donations Scheme Include: loose plate offerings and donations Notes: 50 20 10 No of Envelopes: No of Envelopes: Eligible for GASDS Not Eligible for GASDS Non-Donations 4 Notes 50 20 10 5 Coins 2 1 50p 20p 10p 5p 2p 1p Total cash Cheques Eligible Not eligible 5 Coins: 2 1 50p 20p 10p or 5p 2p or 1p Cheques GRAND Please complete this sheet in conjunction with the 'Vestry Record Notes' provided. Signed... and... Signed and 5
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 36 37 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 0.00 0.00 0.00 0.00 0.00 donations Not eligible 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 38 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 10.00 8.50 6.30 33.50 58.30 donations Not eligible 20.00 0.00 45.00 21.00 86.00 39 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 10.00 8.50 6.30 33.50 58.30 donations Not eligible 20.00 0.00 45.00 21.00 86.00 135.00 58.50 136.30 114.50 444.30 135.00 58.50 136.30 114.50 444.30 Example vestry sheet part 1 St Somewhere's Church Date: Vestry Record Location:. Attendance more than 10? Y / N 42 Example vestry sheet part 2 St Somewhere's Church Vestry Record Cash breakdown Date: Location:. Attendance 10 or more? Y / N 43 Offerings summary 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). Potential GASDS Eligible Not eligible All Other 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 6
Include: loose plate offerings and donations 1 16 1 The 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 from 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. St Church on the Hill, Hillytown Collections on:.. Attendance 10 or more? Y / N 44 45 Potential Small Donations Scheme Gift Aid Envs Other Envelopes Mission Envs Eligible Not eligible 2 17 2 Example vestry sheet 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 All Monies Cheques Gift Aid envelopes (1-15) Other envelopes (16-25) Mission envelopes Tot Notes 20 10 5 Coins 2 1 50p 20p 10p 5p Loose money / donations - GASDS eligible Loose money / donations - not GASDS eligible Other. Other. COLLECTIONS 2p 1p Total cash Cheques Signed and St Somewhere's Church Location:. Small Donations Scheme Tracker Date Open 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 Total GASDS Summary Claim date Total Qtr 1 1203.55 08/08/2013 Total Qtr 2 Total Qtr 3 Total Qtr 4 TAX YEAR 1203.55 Ensure sufficient Gift Aid donations for same period 46 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 2015/2016 by 5 April 2018 Keep claiming Gift Aid, regularly including one-off Gift Aid envelopes. 25% guaranteed! 47 Any questions? 48 How do you claim? Using Charities Online claims procedure 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 49 7
Claiming process 50 Option 3 paper form 51 Charities Online from 22 April 2013 Three options: 1. Claim using online form 2. Claim using own software database 3. Claim using a 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 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 52 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 53 55 56 Skip reg 8
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Buildings element: Get buildings 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 69 70 77 78 www.gov.uk/government /publications/gift-aidschedule-spreadsheetsto-claim-back-tax-ondonations 79 80 11
81 82 For top up element 83 For community buildings element 84 Answer YES Answer NO Answer NO Answer NO Answer YES Answer NO 85 86 12
87 88 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 For top up element 90 For community buildings element 91 Enter year of tax year end More than 1 tax year Enter amount of donations 93 More information www.liverpool.anglican.org/gasds Kim Stanley 0151 705 2132 kim.stanley@liverpool.anglican.org Resources Department 0151 705 2180 resources.team@liverpool.anglican.org 96 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-guidancenotes/chapter-8-the-gift-aid-small-donations-scheme 0300 123 1073 13
97 www.liverpool.anglican.org/gasds 98 www.parishresources.org.uk/giftaid/smalldonations/ 99 100 101 102 www.gov.uk/claim-gift-aid/small-donations-scheme 14
103 104 www.gov.uk/claiming-a-top-up-payment-on-small-charitable-donations 105 106 www.gov.uk/government/publications/charities-detailed-guidancenotes/chapter-8-the-gift-aid-small-donations-scheme 107 Summary Cash donations 20 or less Not covered by Gift Aid declaration For community buildings pre April 2017: Given in the building During religious service 10 or more people Maximum 8000 (was 5000) per church Banked in UK, more than GASDS amount Demonstrate all the above Claim 2015/2016 by 5 April 2018 15