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Gift Aid Small Donations Scheme

November 2018

What will we cover?

• Details of the scheme

• How to take advantage of the scheme

• How to claim:non Diocesan Scheme parishes

• Questions

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Gift Aid Small Donations Scheme

• 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 DonationsScheme for short

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The Small Donations Scheme

• Allows charities to apply for a Gift Aid style repayment

• On small cash donations of £20 or lessthendonations of £30 or less from April 2019

• Without the need to obtain Gift Aid Declarations for those donations

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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

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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!

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What is a small donation?• Cash donation from an individual

• £20 or less (£30 from April 2019)

• Coins and notes (any currency!)

• Not cheques, Standing Orders, online giving, text giving

• Since 6 April 2017: contactless donations by debit card/credit card/app(but not chip and pin)

and

• Collected and banked in UK

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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

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Benefits to us – Needs updating

• Potential £244,000 for churches in the Diocese of Liverpool(based on 2014 figures)

• If £8000 limit applied to 2014 figures, potential for £343,000 for Liverpool

• £15 million parishes nationally

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Rules, rules, rules

• Eligibility rules

• The matching principle

to prevent fraud.

• Connected charities

• Community buildings

for fairness.

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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

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Is my church eligible? #2

Claims for donations from 6 April 2017:

• No HMRC penalty in the last 2 years

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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

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The matching principleFor example:

Income: Gift Aid £600 GASDS £8000

Claim: Gift Aid £150

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GASDS £1500

• Because 10 x £600 = £600025% of £6000 is £1500

• Need £800 Gift Aid for full GASDS

• Or £15.38 Gift Aid per week

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

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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 = religiousservices

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Community buildings

• £8000 GASDS allowance for each building

• Buildings must be separate

Buildings can include:

• Church

• Community hall

• School

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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

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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?

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The Church of England position

Initially

• HMRC judged PCCs to be connectedcharities for the purposes of the scheme

• We all shared £8000 “Top up” allocation

• We could only claim on Community Buildings element of the scheme

What changed?

• HMRC agreed PCCs not connected

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What element do you use?

Are you:

• a single church parish?

Claim on the top up element of the scheme

OR

• a multi church parish?

Claim on the community buildings element of the scheme

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Top up 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

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Buildings element - what do you claim?

• Up to £8000 for each separate church building

• 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)

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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 buildingduring services

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Buildings element – you can’t claim:to 5 April 2017

Donations

• received outside the building

• in wall safes

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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 inthe Local Authority Area of thebuilding

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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 withinthe Local Authority

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Can you claim on both elements?

• The complicated answer! Yes, but…

• Have you reached £5000 per church?

• Yes – then claim no more

• No – ask: is the amount worth it?

• Records must clearly show which donations fit with which part of the scheme

• NEVER exceed £5000 per church – or nationally, C of E will lose concession

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Both elements - what can’t you claim?

Donations

• for tea/coffee

• for votive candles

• flower festival

• anything with a “benefit”

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What records do you need?

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

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Simple vestry sheet example

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St Somewhere's Church Date: ………………………………

Vestry Record Location: ……………………………………….

Attendance 10 or more? Y / N

Potential Gift Aid Small Donations SchemeInclude: loose plate offerings and donations

TOTALNotes £50

£20£10

£5Coins £2

£150p

20p10p5p

2p1p

Total cash

Cheques

TOTAL

Signed ................................ and ................................

Eligible Not eligible

33National church: vestry sheet example

Regular Giving

Envelopes

One-off Gift Aid

Envelopes1

10 or more

attending? 3

No of Envelopes : No of Envelopes : Eligible for

GASDS

Not Eligible for

GASDSNon-Donations

4 TOTAL

Notes: £50

£20

£10

£5

Coins: £2

£1

50p

20p

10p or 5p

2p or 1p

TOTAL

Cheques

GRAND TOTAL

Signed and

St Agatha's Church, Anywhere

Vestry Record

Date: Open Plate and Non-Gift Aided

Donations2

Please complete this sheet in conjunction with the 'Vestry Record Notes' provided.

Your turn!34

On your offering plate:

£50 note

£20 and £10 note in rubber band

2 x £20 note

3 x £10 note

6 x £5 note

12 x £1 coin

5 x 50p

7 x 20p

11 x 10p

14 x 5p

10 x 2p

13 x 1p

Unmarked envelope containing £10 and £5 note

Cheque for £10

Envelope marked "Magazine" with 9 £1 coins

Exercise 1

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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

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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

donations

Not eligible 0.00 0.00 0.00 0.00 0.00

TOTAL 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

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

donations

Not eligible 20.00 0.00 45.00 21.00 86.00

TOTAL 135.00 58.50 136.30 114.50 444.30

10.00 8.50 6.30 33.50 58.30

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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

donations

Not eligible 20.00 0.00 45.00 21.00 86.00

TOTAL 135.00 58.50 136.30 114.50 444.30

10.00 8.50 6.30 33.50 58.30

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Your turn again!40

Gift Aid? 07/04/2013 Chq

1 Y 10.00

2 15.00 Chq

3 4.00

4 Y 5.00

5 25.00

6 5.00

7 Y 25.00

8 2.00

9 Y 60.00

10 3.00

Gift Aid

Eligible small

donations

Not eligible

(non Gift Aid)

TOTAL

Exercise 2

Example vestry sheet – part 142

St Somewhere's Church Date: ………………………………

Vestry Record Location: ……………………………………….

Attendance more than 10? Y / N

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) …………………………….

TOTAL

Offerings summary

Example vestry sheet – part 243

St Somewhere's Church Date: ………………………………

Vestry Record Location: ……………………………………….

Attendance 10 or more? Y / N

Potential GASDS

Eligible Not eligible All Other TOTALNotes £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

TOTAL

Cash breakdown

44Collections on: ……………………………….. Attendance 10 or more? Y / N

Include: loose plate offerings and donations 1 16 1

2 17 2

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

Cheques Tot

TOTAL

Gift Aid envelopes (1-15)

Other envelopes (16-25)

Mission envelopes

Loose money / donations - GASDS eligible

Loose money / donations - not GASDS eligible

Other ……………………………. Total cash

Other ……………………………. Cheques

TOTAL COLLECTIONS TOTAL

Signed …………………………………………… and ……………………………………………

1p

All Monies

Notes £20

£10The 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.

£5

Coins £2

£1

50p

20p

10p

5p

2p

Eligible Not eligible

St Church on the Hill, Hillytown

Potential Small Donations Scheme Gift Aid Envs Other Envelopes Mission Envs

Example vestry sheet

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46St Somewhere's Church

Location: ……………………………………….

Small Donations Scheme Tracker

DateOpen

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 60.00 111.2328/04/2013 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

Claim date

Total Qtr 1 1203.55 08/08/2013

Total Qtr 2

Total Qtr 3

Total Qtr 4

TOTAL TAX YEAR 1203.55

Total GASDS Summary

Ensure sufficient Gift Aid donations for same period

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 2016/2017 by 5 April 2019

• Keep claiming Gift Aid, regularly –including one-off Gift Aid envelopes. 25% guaranteed!

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Any questions?

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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

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Claiming process

• 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

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Option 3 – 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

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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

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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

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Skip reg

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10

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60 61

62 63

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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

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Gift Aid 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

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www.gov.uk/guidance/schedule-spreadsheet-to-claim-back-tax-on-gift-aid-donations

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www.gov.uk/government/publications/gift-aid-schedule-spreadsheets-to-claim-back-tax-on-donations

Information required

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www.gov.uk/government/publications/gift-aid-schedule-spreadsheets-to-claim-back-tax-on-

donations

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80 81

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Answer YES

Answer NO

Answer NO

For top up element

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Answer NO

Answer YES

Answer NO

For community buildings element

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About the organisation

• Name of Charity Regulator?

Either

• PCC registered with Charity Commission:Select: Charity Commission. Enter: Reg number

OR

• PCC not registeredSelect: None

• Is claim being made by corporate Trustee?

Answer: No

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15

88 89

90

For top up element

More than 1 tax year

Enter amount of donations

Enter year of tax year end

91For community buildings element

92 93

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What do you need to do?

• Decide how you will claim

• Keep your PCC informed

• Check your Gift Aid donor information is correct – use Electoral Roll?

• Claimed GASDS 2016/2017?You must claim by 05/04/2019

• Concerned? Consider joining the Diocesan Gift Aid Scheme

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Diocesan Gift Aid Scheme

Existing system, provides continuity

Declaration checking & storage

Claims prepared

Online claiming done for you

Gift Aid secretary support

Gift Aid audits

Fee = 5% tax claim

More informationwww.liverpool.anglican.org/GASDS

Kim Stanley 0151 705 2132giftaid@liverpool.anglican.org

Resources Department 0151 705 2180resources.team@liverpool.anglican.org

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-guidance-notes/chapter-8-the-gift-aid-small-donations-scheme

0300 123 1073

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www.liverpool.anglican.org/gasds

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www.parishresources.org.uk/giftaid/smalldonations/

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www.gov.uk/claim-gift-aid

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www.gov.uk/claim-gift-aid/small-donations-scheme

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www.gov.uk/claiming-a-top-up-payment-on-small-charitable-donations

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www.gov.uk/government/publications/charities-detailed-guidance-notes/chapter-8-the-gift-aid-small-donations-scheme

Summary• Cash donations £20 or less (£30 from April 2019)

• 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 per church

• Banked in UK, more than GASDS amount

• Demonstrate all the above

• Claim 2016/2017 by 5 April 2019

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Any questions?

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Online giving

www.liverpool.anglican.org/Digital-Giving

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Contact Gordon Fath

gordon.fath@liverpool.anglican.org

0151 705 2180