Backdating gift aid

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In order to make a Gift Aid donation you’ll need to make a Gift Aid declaration.The charity will normally ask you to complete a simple form – one form can cover every gift made to the same charity or CASC for whatever period you choose, and can cover gifts you have already made (backdating your claim for up to four years) and/or gifts you may make in the future.If you do not pay tax, you should not use Gift Aid. The declaration can be in writing or orally but, usually, the charity will provide a written declaration form.You do not have to make a declaration with every gift.You should therefore keep a record of payments made under Gift Aid for each tax year.The time limit for claiming tax relief on Gift Aid donations is four years.

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Relief is given either for the tax year of payment or in some cases it is now possible to elect to receive the benefit of the higher/additional rate tax relief one year earlier than previously.There is no monetary limit on the amount of the donation which may be caught by these rules.The rules will replace the existing substantial donor rules which restricted the tax relief available on charitable donations where there are value extracting transactions between the charity and its largest donors (£25,000 in 12 months or £150,000 over a period of six years.All you need from your donor is a simple but correctly worded Declaration saying that they want to use Gift Aid. The church must keep an "audit trail" for every donation included in any claim.Pending full guidance soon at Giving in Grace see the advice at the excellent Parish Resources website.So for example, if you give £10 using Gift Aid in 2011/12 that gift is worth £12.50 to the charity.

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