Tax relief for charities
New Gift Aid is a government scheme to encourage giving to charities, like us. It is far more flexible and helpful than previous schemes and means that Girlguiding UK subscriptions are now eligible for Income Tax Relief.
Despite the changes, which were introduced in the 2008 Budget, it is possible to claim a tax repayment of 25p for every £1 paid in subscriptions. HM Revenue & Customs will also pay Transitional Relief on qualifying subscriptions paid between 6th April 2008 and 5th April 2011.
Gift Aid is available on subscriptions for which Standard rate Income Tax has been paid and it is recommended that all Units, Districts and Divisions should take advantage of this scheme.
To get information about setting up Gift Aid go to either:
Girlguiding Web - Members' area & Go! - Running your unit - Finance and insurance - Gift Aid
Here you will find a very helpful "Gift Aid Information Pack"
www.hmrc.gov.uk/charities/gift_aid/ This is another very helpful site from HM Revenue & Customs giving information and instructions.
Claiming money back
Setting up the scheme does involve some work, but much of this is a one-off exercise. The Getting Ready for Gift Aid pack explains everything you need to do and has been prepared to make the process as easy as possible.
Essentially there are six steps to claiming Gift Aid:
Find someone to help you with the administration, such as a parent, if you feel that you do not have enough time to set up the scheme.
Write to the Inland Revenue for a Charity Reference number. A sample letter is included in the pack. Fill in your unit name and contact details and send this off to the relevant address.
Set up a Gift Aid record file with four sections (more details below)
Check your unit book keeping to ensure they record all the information you need. If not, add an extra column for subscriptions that have been 'gift aided'.
Get the Gift Aid declarations signed by parents/guardians and file them very safely - they are worth money to you.
Once a year, or more often if you wish, fill in the Inland Revenue Claim forms to obtain your tax repayment
Keep your records filed safely in your Gift Aid record file.
Get a little extra help...
It is hoped your unit will be able to take advantage of the New Gift Aid relief. Girlguiding UK is delighted that the rules now mean that all subscriptions are eligible for tax relief under this scheme - it is a great way to increase your unit funds.
Contents of the information pack
1. How to apply for a Gift Aid number for your unit.
2. How to keep the necessary records and filing system.
3. Gift Aid declarations - advice and guidance on how to get them signed.
4. Step-by-step guide to making a claim.
5. How to write an explanatory leaflet for parents.
6. Where to find help - useful telephone numbers and addresses.
In April 2008 this was reduced to 25p for each £1 donated but Transitional Relief will be applied to donations until 5th April 2011.
Donations to Wiltshire South County
Wiltshire South County reclaims Income Tax on Donations and Subscriptions paid directly into County funds. This applies to all eligible Donations whether they are one off gifts or paid by Standing Order on a regular monthly or annual basis. County Gift Aid Declaration form and Standing Order Mandate may be downloaded as required.