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Gift Aid - additional information

Higher rate Tax Payers
For higher rate tax payers River still recovers tax at the basic rate (ie. £25 on a net gift of £100).  However, the donor can claim back the higher rate tax by completing the details of their gift-aided payments on the annual self-assessment tax return.

Children’s Tax Credit
We have a copy of advice given by Stewardship Services (a Christian charity which both administers giving and also provides advice on various aspects of giving).  This guidance indicates that gift-aided donations may be deducted from gross income when completing the Children’s Tax Credit assessment form. 

If you wish to find out more about this, please see separate  information sheet or speak to Stewardship Services directly on  020 850 5600 or via their web-site www.stewardshipservices.org

Treating Gift Aid Donations as if made last year
The law now allows for Gift Aid donations made in a given Tax Year to be treated as if made the previous Tax Year, providing that sufficient tax was paid the previous year to support the previous year’s and the current year’s donation.  This can potentially benefit:-

(i)   River: If someone who was a tax payer the previous year but not the current year makes a  gift to River, then providing sufficient tax was paid the previous year the donor may still ask for it to be Gift Aided increasing the value of the gift to River by 25%.

(ii)   Donor: If someone who was a higher rate tax payer the previous year but a lower rate payer in the current year makes a gift to River, by treating the gift as made the previous year the donor obtains a personal repayment equal to 18% of the gross donation made in the current year.

This system is called ‘carry back’.  The Revenue must be notified by the date that the tax return for the earlier year is submitted (ie. 31st January following the earlier tax year end)

If you wish to find out more about this, please see separate  information sheet or speak to Stewardship Services directly on 020 850 5600 or via their web-site www.stewardshipservices.org

Tax on gifts from Limited Companies
If a Limited Company wishes to make a gift to River the tax situation is a little different. Instead of the Company paying the tax to the Inland Revenue and River reclaiming it from the Government, the Company give the gross amount (net gift and associated tax) direct to River.  The Company note this on their tax return and are excused tax on the value of the net gift.   If you want any further information on this, The Inland Revenue Charities HelpLine on 0854 302 0203 are very helpful.