Gift Aid

If you are one of the unfortunate individuals required to do so, bear in mind that the deadline for preparing and filing your self assessment tax return (2006/07) draws closer.

When do I need to file my tax return?

The due date for filing the return, depending on the date on which the notice to complete the return was issued by the tax authorities, will probably be 31st January 2008.

If, when you prepare your return form, you find that you are entitled to a repayment of tax, don’t forget that you can elect to nominate either the Diocese (which is a registered charity) or your parish to receive all or part of your repayment.

How does it work?

You should refer to boxes 19A.1 to 19A.5, on page 8 of the return form, completing the boxes as appropriate.

If you tick box 19A.4, the repayment will be treated as a Gift Aid donation – the repayment will be treated, as indeed all Gift Aid donations are, as being paid net of basic rate Income Tax. The repayment will then be grossed up, providing you pay as much Income or Capital Gains Tax in 2007/08 as the Diocese will receive on the donation, by an amount equivalent to 28.20% of the deemed gift.

For example:

You are entitled to a tax repayment for the tax year 2006/07 amounting to £250.00.

You decide to nominate the Diocese of Middlesbrough Priests’ Training Fund to receive all of that repayment, ie
£
Donation – net of basic rate tax 250.00
Basic rate tax added to the donation (22/78) 70.51
Amount to be received by the Diocesan Fund 320.51

You must have paid Income Tax or Capital Gains Tax during 2007/08, on any source of assessable income or gains, of an amount totalling at least £70.51.

The grossed up amount will then be deposited into the bank account of the Diocese or the Parish, being treated as an anonymous donation.

If you are doubtful about your personal tax position, please refer to your professional agent for advice.

Is the Diocese of Middlesbrough (and its parishes) able to receive such a donation?

Yes. Diocesan funds and all of the parishes within the Diocese of Middlesbrough have been registered as a nominated charity for the purpose of this extension of the Gift Aid Scheme.

Details of the individual codes allocated to the Diocese and the parishes, which you will need in order to make the appropriate entry in box 19A.3, can be found on the website of HM Revenue & Customs (www.hmrc.gov.uk). Alternatively, you can contact the Diocesan Gift Aid Officer for the relevant details – he can be contacted by telephone (01642 850505, ext 234) or email. His email address is: giftaid.legacy@dioceseofmiddlesbrough.co.uk

Martin Russell, Gift Aid and Legacy Promotions Officer