Churches are charities, and can recover the basic-rate tax paid on donations made by donors who are UK taxpayers. Basic rate tax is 20 per cent, so this means that if you give £1 using Gift Aid, it’s worth £1.25 to the church. The system is easy to set up and operate. In addition the Gift Aid Small Donations Scheme(GASDS) allows for a Gift Aid style repayment on small cash donations under £20 received in churches.
There are a number of advice sheets regarding Gift Aid available at Parish Resources including
- A simple checklist to help you ensure you’re adopting good practice with Gift Aid.
- Guidance on Claiming Gift Aid including a helpful guide to Claiming online which includes screenshots and will walk you through the process.
- Under “Starting Out” Fact sheets aimed to help new Gift Aid officers, and churches setting up Gift Aid for the first time or those new to Gift Aid processes.
- A note highlighting ’Ten tips for maximising Gift Aid’
Gift Aid Small Donations Scheme (GASDS)
Gift Aid Small Donations Scheme: allows parishes to claim a Gift-Aid style repayment to be received on small cash and contactless card donations of £20 or less up to a threshold of £8,000 of donated income per tax year per church.
Card Readers and Gift Aid
Small donations (under £20) are treated as GASDs as explained above.
For FAQ click here. Section 4 provides guidance on claiming Gift Aid on card payments
There’s also a short web clip on ‘How To Claim Gift Aid’ here – it’s the fourth and final video on the webpage.