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Below you will find how you could help St Marys Church. But for more information, please contact our treasurer Brian Edwards who will be able to give you further information.
PCCs are legal charities and, as such, are exempt from income tax. The tax which has been paid on the giving of Church people can be recovered from the Inland Revenue. Church people should understand that this recovery of tax is not "stealing from the Government" but good stewardship of their resources.
How does it work?
Gift Aid is surprisingly easy to use. Gift Aid can apply to donations of any amount, large or small, by cash, cheque, postal order, direct debit, standing order.
If you are a UK taxpayer, all you have to do is give the Church a simple Gift Aid declaration. This might involve completing a short form or just giving basic details to the Church over the phone or the Internet.
What's more - one single Gift Aid declaration can apply to all past donations you have made (since April 2000) and to all future donations you make.
As a higher rate taxpayer looking to reclaim tax from your donation, all you have to do is remember to include details of your charitable gifts on your tax form. Also, from April 2003, higher rate taxpayers were able to reclaim tax relief from donations paid to charity both during the previous tax year and during the current tax year, that means the relief is paid that much quicker.
Donors who are liable to tax at the basic rate
If a donor wishes to make a regular net contribution of £100 to the Church, this is paid from their gross income of £128.21, on which they have to pay income tax. At a 22% basic rate of tax they pay £28.21 in tax, leaving £100 to be paid to the Church. The Church can then recover tax at the basic rate from the Inland Revenue and the gift is worth more to the Church than one that does not qualify for tax relief.
Donors who are liable to tax at the higher rate
Donors who are liable to tax at the higher rate (40%) will have paid £51.28 in tax. The Church can re-cover tax only at the basic rate but the higher rate relief can be claimed back by the donor - by entering the details on their Self Assessment tax return. A net gift of £100 to the Church then only costs the donor £76.93. The Church will hope that this reclaimed tax will be used to increase the donation at no extra cost.
Do you qualify?
Providing you pay as much tax (income and/or capital gains) as the Church will be entitled to reclaim on your donations in the same financial year, you are entitled to use Gift Aid. For example, if you wish to Gift Aid your charitable donations that total £100 in one year, you will need to have paid at least £28 in to the taxman in respect of that tax year.