Gift Aid

What is gift Aid

Gift Aid is a scheme used by charities and donors to reclaim tax on charitable giving.

So what does it mean?

It means that if you are a taxpayer, the Diocese can reclaim tax for your parish on all your donations. It can cover all giving, whether by weekly or monthly offertory, irregular donations, or single one-off donations. We can reclaim tax on your donations at the basic rate equivalent, and as long as you have paid enough tax, at whatever the rate then your giving is eligible.

Overall, for every £1 you give, your parish will receive additional 25p from HMRC.

The tax you pay can be Income Tax (e.g. on earnings, dividends, bank interest, etc) or Capital Gains tax. You should be paying at least the amount of tax during the year that the charity reclaims on your Gift Aid during that tax year. If you pay tax at the higher rate you will receive additional relief.

How does it work?

You make a “Gift Aid declaration” to the Church, the Diocese can then reclaim for your parish the tax you have paid. There has to be a record of what you give, so we ask you either to use envelopes for cash, give by cheque or by standing order. The declaration will cover everything your give.

What does it cost me?

It costs you absolutely nothing! You are giving to your parish anyway, this simply asks the Government to redirect to your parish some of the tax you have paid to them. Please also be assured that your donations are confidential.

What happens if I stop paying enough tax?

Simply ask your Parish priest or Organiser to cancel your declaration. If you don’t, then you could be sent a bill by HMRC for any tax reclaimed by the Diocese that you have not paid. If, in the future, you start paying sufficient tax agan you can make a new declaration.

Who to contact?

If you have any questions, or want to sign a Gift Aid declaration, please contact Catherine Peet at catherine.peet@dioceseofsalford.org.uk.