TAX RATE CHANGE FROM APRIL 6TH 2008 - THE TAXMAN RELENTS!

The basic rate of income tax drops on April 6th 2008 to 20% - good news for you but bad news for us, since we will be able to claim back less tax. However, in the 2008 Budget, the Chancellor announced a three-year transitional relief. This means that HMRC will make up the income we would have lost due to the tax rate change (subject to the Budget legislation being passed in due course) until April 5th 2011.

Give NLC MKWest 78p and the Tax Man will make it up to £1

The Chancellor has made it easy to stretch your giving, if you pay income or capital gains tax. Your donation can be for any amount, and you may need to sign only one simple form ever! Everything you need to know about Gift Aid is here....

So what is Gift Aid?

New Gift Aid is the scheme under which you make donations on which we claim back the income or capital gains tax you have paid. For example, a gift of £78 is worth £100 to the church - that's the £97.50 you earned before you paid 20% tax on it, plus the transitional relief mentioned above (£2.50 in this example = £100 total). This calculation is true until April 5th 2011, when the transitional relief ceases. After that you would need to donate £80 for the church to receive £100 in total.

How do I give via Gift Aid?

Just make a donation by any means. (Our bank details are given below.) The Gift Aid Administrator will get you to sign a Gift Aid Declaration later. It will ask for your name and address - no other details apart from the donation itself. We'll suggest you make one declaration covering every donation to the church from 1st April 2007 onwards. You wouldn't have to sign any more forms after that! (If this could be a problem, we'll tailor a declaration to your circumstances.) You can also make the declaration online of course - just click HERE!

Points to watch

Cash donations must be in an envelope with your name written clearly on it.

If you are giving from a joint account, please make sure you sign the relevant section on the declaration form. Please make sure we can tell which one of you is signing the cheque (write your name on the back to be sure) as the signature must be that of the taxpayer, to qualify for Gift Aid.

Gifts can only be from one named individual - husbands and wives must make separate declarations and donations.

If you use a cheque from a Building Society account please make sure your name is mentioned on it - if not, write it on the back. If you give via telephone or internet banking, please quote your name as the reference. This is so we can provide an audit trail to the HM Revenue & Customs.

I want an easy way to give regularly!

Just pay by standing order. There's a standing order form HERE. Alternatively, set one up via telephone or internet banking using these account details:

Bank Details

Bank: CAF Bank; Sort Code: 40-52-40
Account: New Life Church Milton Keynes West
Account number: 00013883

Can I Gift Aid donations to Special Appeals?

Yes! Just use the envelope which we sometimes provide for special gift days, or any envelope - or just write a note on the back of the cheque so we know it's for that appeal.

What if I forget to say I want to Gift Aid a donation?

You can tell us afterwards - by phone, fax or e-mail, or via our website. Just tell us the amount of your cheque and the date you gave it. We will send you written confirmation. You can do it now, HERE!

Are there any limits to what I can give?

None at all now! But remember, in each tax year, you must pay at least as much income or capital gains tax (at any rate) as the total we claim back. If you ask, we will remind you of your total giving at intervals. You can do it HERE! Otherwise, you will receive an annual statement if you need it.

Won't people know how much I'm giving to God?

Well, the Treasurer and the Gift Aid Administrator have to account for the money to the HM Revenue & Customs, but no one else gets to know the details of Gift Aid giving.

Does it matter if I pay tax only at lower rate?

Not any more. You just need to be sure that you will have paid enough tax in total to cover what we will claim back.

How do I know what tax you'll claim back?

Take the amount of your gift and divide it by 4. But for three years we will also receive a top up from HMRC which makes your gift worth even more.

What if I pay higher rate tax?

People who pay tax at the higher rate can also get relief on income or capital gains tax on their donations You can claim this via your tax return. Again, if you need to be advised of your annual giving, please ask HERE.

What if I'm self-employed?

Start with the actual amount you want to give in this tax year. Divide it by 4, then multiply by 5. This gives the gross (i.e. before tax) value of your giving. Will you be going to pay income or capital gains tax on at least that amount of your income over the year? If so, you can safely give the amount you started with over the year. But now see...

What if I make a late donation?

Donations made up to about 9 months after the end of the tax year may now be included for relief in the return for the previous year. See your tax return notes.

Can I cancel a declaration?

Yes, at any time. There is no forward commitment.

This information is correct at March 2008
New Life Church Milton Keynes West is a Registered Charity No. 1118599