An Introduction to Gift Aid

Transcription

1 Gift Aid Gift Aid is a simple government initiative which allows you to increase the value of your donations at no extra cost to you or your Scout Group. For every pound donated or paid in membership subscriptions to your Group, you can get an extra 25 pence from HM Revenue and Customs, helping your donations go further. In real terms, this means that if your Group has 50 members paying 60 per year, it would give you a total income of 3,000 per year. Assuming all of the parents/guardians are taxpayers then the potential Gift Aid is around 750 per year. If you have not claimed Gift Aid before, you are entitled to claim back the previous six years of contributions. Using the example above, this could give you a one-off payment of 5,040. It is worth remembering that if in the past your Group have spent a great deal of time on a grant application with no guarantee of a return. Gift Aid does not take anywhere near the amount of time to administer as a standard grant application, and income is guaranteed, yet not everyone is doing it. HM revenue and Customs regards Membership Subscriptions as 'donations' and Groups or Districts can claim gift aid on these fees. You can also get Gift Aid on money donated for sponsored events. Gift Aid is not available on camp or Jamboree fees because the benefit to the 'donor' is regarded as too high to qualify for the scheme.

2 An Introduction to Gift Aid Gift Aid is a simple government initiative which allows you to increase the value of your donations at no extra cost to you or your Scout Group. For every pound donated or paid in membership subscriptions to your Group, you can get an extra 25 pence from HM Revenue and Customs, helping your donations go further. In real terms, this means that if your Group has 50 members paying 60 per year, it would give you a total income of 3,000 per year. Assuming all of the parents/guardians are taxpayers then the potential Gift Aid is around 750 per year. If you have not claimed Gift Aid before, you are entitled to claim back the previous six years of contributions. Using the example above, this could give you a one-off payment of 4,500. It is worth remembering that if in the past your Group have spent a great deal of time on a grant application with no guarantee of a return. Gift Aid does not take anywhere near the amount of time to administer as a standard grant application, and income is guaranteed, yet not everyone is doing it. HM revenue and Customs regards Membership Subscriptions as 'donations' and Groups or Districts can claim gift aid on these fees. You can also get Gift Aid on money donated for sponsored events. Gift Aid is not available on camp or Jamboree fees because the benefit to the 'donor' is regarded as too high to qualify for the scheme. From 2013 you will be able to claim Gift Aid on one-off small cash donations of 10 or less up to a total value of 5,000 per year, per charity, without the donor filling out a Gift Aid declaration. To take advantage of this, you will need to have been recognised by HMRC for Gift Aid purposes for at least three years, have been operating Gift Aid successfully throughout that time and have a good tax compliance record. Full details of this new scheme for charities will be not available until 2012.

3 Getting started with Gift Aid STEP 1: Registering for Gift Aid Before applying for Gift Aid, your Group must be registered with HMRC. The registration process has changed recently and groups are now required to complete a form called a CHA1. You can download the form from our website at Guidance on completing the form can be found at the back of this guide. Once completed the form must be returned to: HMRC Charities St Johns House Merton Road Liverpool L75 1BB STEP 2: Nominate an authorised claimant official and/or nominee Before you can make a repayment claim you need to nominate someone in your Group to be an authorised official. This means that they can sign repayment claim forms and/or receive money on behalf of your Group. You can nominate anyone you consider suitable for these roles - for example, your Treasurer, or a member of your Group Executive Committee. You can record your authorised official on your application form, (see Step 1) or you'll need to fill in and return Form ChV1 Charities Variations. You can download the form from our website at Use Form ChV1 to tell HMRC about any changes to authorised officials or nominees, to give contact or bank account information, or to report any changes to these details. Please wait until HMRC has updated your information before submitting a repayment claim. Make sure you complete the forms in full and sign them. Failure to do so may delay your repayment claims. STEP 3: obtaining Gift Aid declarations Before your Scout Group can claim tax back on a donation made by an individual, you need to obtain a Gift Aid declaration from that donor. A Gift Aid declaration can be made in writing, electronically or verbally, and must contain certain information about the donor. You also need to show that you have advised the donor that they will need to pay sufficient UK tax at least equal to the amount that you will reclaim on their donation(s). You must keep these records in support of your Gift Aid repayment claims. Each donation included in a claim must be supported by a Gift Aid declaration. What information a Gift Aid declaration should include HM Revenue & Customs (HMRC) doesn't require you to use an official Gift Aid declaration form and there is no set design for a Gift Aid declaration. However, by law, any Gift Aid declaration you receive (whether written or verbal) must contain the following information: the name of your Scout Group, the donor's full name - as a minimum initial and last name, the donor's home address - as a minimum the house number and postcode, a statement showing which donations are covered by the declaration,

4 a statement or verbal confirmation by the donor that Gift Aid is to apply - on a written form or on a website, a tick box is sufficient, An electronic declaration made on a charity's website is accepted as a written form of declaration. Your charity or CASC should ask donors to provide the same name and home address details as required on a written declaration. The information provided by the donor on their declaration can then be stored electronically. The website should also contain a note, or statement to the donor, about the need to pay sufficient UK tax to cover any repayment claimed by your charity on the donation(s) specified in the declaration. This must be clear and visible when the donor is completing their Gift Aid declaration online. Gift Aid declarations can be worded so that they apply to: a specific donation or donations only (including past donations), a specific donation plus all future donations, a specific donation, specified past donations plus all future donations, Declarations that include all future donations are known as enduring declarations. Donors need to understand that they must pay at least as much UK Income Tax and/or Capital Gains Tax (in the year in which they donate) as the amount that will be claimed by your Group. So it's a good idea to state this clearly on your Gift Aid declaration. Declarations linked to sponsored events To save time and help your record keeping, you can design a sponsorship form that can also be used as a Gift Aid declaration form. Sponsorship form design If you're using the sponsorship form as a schedule to your repayment claim it's important to include the correct information on the form. The sponsorship form must contain the following: the name of your Scout Group the sponsor's full name the sponsor's home address including postcode a Gift Aid declaration (at the top of the form) a column containing a checkbox for the donor to tick, indicating that they want their donation to be treated as a Gift Aid donation and that they understand what the Gift Aid declaration means a note explaining that the sponsors must pay a sufficient amount of tax at least equal to the amount that your Group Will claim. There is no official form available for sponsored events but you can find a suggested template on our County website at: Records of cash donations Linking cash donations to Gift Aid declarations needs care. If your Group receives regular cash donations from donors you might want to consider using an envelope scheme. This is where you can collect cash donations in envelopes so that they can show an audit trail linking the donation to the donor. For one-off donations, your Group may choose to pre-print the Gift Aid declaration on the envelope for completion by the donor. If the donor is a regular supporter, you may already hold their Gift Aid declaration, in which case the envelope needs to show either the donor s name or a unique identifier such as a reference number which can be cross-referenced to a donor register.

5 When the envelope is opened and the contents are counted, an official from your Group should record the amount on the envelope it came in, and in a donor record. You should keep the envelopes as part of your normal record keeping. Format and storage of declarations You can decide how best to store your Gift Aid declarations, but your records must clearly show that each donor included in your repayment claim has made a declaration. Declarations must be made available for review if required by HMRC. Paper declarations can be kept in their original format. Or they can be scanned and stored electronically, as long as the records can be searched and individual declarations located as required. If you keep scanned copies which are fully auditable you can destroy the originals. Transcription onto a separate list or database is not an acceptable alternative to keeping the original declarations, or scanned copies. Records of donors who have made a declaration electronically, for example on a website, can be stored on a database. If records are kept on computer, it is advisable to make regular backups and store them in more than one location. Timescales for keeping declarations The time limits for keeping Gift Aid declarations and Gift Aid payment records is seven years after the end of the accounting period they relate to. For example if your Group prepares its accounts to 31 December 2007 and makes a Gift Aid repayment claim for that period during 2008, it must keep the records until at least 31 December If HMRC asks you questions about your tax return or repayment claim, you'll need to keep the records until the enquiries are finished. A single Gift Aid declaration may apply to more than one donation, so you'll need to work out when the last gift specified on a particular declaration is received, and keep the declaration long enough to satisfy the rules set out above. If you have any enduring Gift Aid declarations covering ongoing donations you'll need to keep them permanently. Cancelled declarations A donor can cancel an enduring Gift Aid declaration at any time. For example a donor may cancel his declaration because he no longer pays any UK tax. Cancellation of a declaration will not affect Gift Aid donations that have already been made but once a declaration has been cancelled any further donations from that donor won't qualify for Gift Aid. You must keep records of cancelled Gift Aid declarations, including the date of cancellation. Written Gift Aid declarations relating to 'one off' gifts can't be cancelled once the gift has been made. Gift Aid record keeping and audit requirements Keeping records You must keep an auditable record of: all Gift Aid declarations and confirmation that you have advised the donor that they must pay at least as much UK tax (for the tax year that they donate) as the amount your charity or CASC will reclaim on the donation,

6 any cancellations of Gift Aid declarations, any benefits you provide to donors, Records must be kept in the same format as when you received them, but can be scanned and stored electronically. You must also be able to locate individual declarations on request for audit checks You must keep records of donations received, the Gift Aid declarations relating to those donations - including any that are cancelled - and records of any benefits you have given in return for donations. You must be able to show that your Gift Aid repayment claims are accurate and that all the conditions of Gift Aid are met - for example, that donations are for gifts of money and that the value of any benefits given in return are within certain limits. The records must also provide an audit trail linking each donation to an identifiable donor who has given a valid Gift Aid declaration. If you don t keep adequate records you may be required to pay back any tax reclaimed, with interest. You may also be liable to a penalty under the rules of Self Assessment. STEP 4: Fill in the R68(i) 'Gift Aid and tax repayment claims form The R68(i) is the starting point for any repayment claim that your Group makes. The form uses tables known as schedules to record the names of your donors who have completed a Gift Aid declaration, and the amounts they have donated. It also asks for details of other income you've received such as bank or building society interest from which tax has been deducted. You need to complete these schedules to show the appropriate accounting period for all income received and the form will automatically work out if there is any repayment due to you. To avoid common errors when completing the schedules read our guide to completing form R68(i) which you will find at in the appendix of this guide. You will also need to provide payment details - who HMRC should make the payment to. Your nominated signatories must remember to sign and date your claim. Gift Aid claims for sponsored events Gift Aid claims for sponsored events follow a slightly different procedure, as follows: You should make the claim separately from any other repayment claim. You can make a separate claim for each sponsored event. You still need to complete form R68(i) Claim form. The name of each participant in a sponsored event can be listed on the R68(i) Gift Aid schedule together with the total Gift Aid donations on their sponsorship form(s). Alternatively the name of each sponsor and the amount of their gift should be listed on the R68(i) Gift Aid schedule You must still keep all of the original sponsor forms available for any audit of your claim by HMRC. Gift Aid forms checklist Once you've completed your repayment forms, check them carefully as any missing information may delay your repayment.

7 Use the checklist below to make sure you've completed everything before you send your form to HMRC. Has the form been signed and dated by an authorised official or nominee? If the authorised official or nominee has changed since your last claim have you enclosed a completed form ChV1 Charities Variations form? Have all the necessary supporting schedules been enclosed with the form? For claims relating to sponsored events have you restricted your claim to only those donations where the sponsorship form has been correctly completed? Have you included your correct and up-to-date bank account details on the R68(i) Gift Aid Claim form? A change in your banking details may cause a delay in making repayment to your charity. You should not send in any Gift Aid declarations with your claim. Time limits for making a claim You can make a claim whenever you like, but there are certain time limits. Once the time limit for making a repayment claim to HMRC has passed any tax paid can't be claimed. However, charities or CASCs are eligible to receive interest on backdated repayment claims that are received by HMRC within the time limits. Time limits for a charitable trust Claims must be made no later than four years after the end of the tax year to which the claim relates. So, for donations made during the year ended 5 April 2011, the final date on which a Gift Aid repayment claim can be made to HMRC Charities is 5 April Sending your claim forms to HMRC When you've completed and checked your forms, return them to: HMRC Charities Repayments (Unit 361A) St John's House Merton Road Liverpool L75 1BB When can you expect your repayment? Once HMRC receives your claim form, if everything is in order you can expect your payment within 15 working days. First claims submitted to HMRC should be paid within 25 working days of receipt. If you make any mistakes or leave gaps on your form, HMRC may have to contact you or make further enquiries which can cause delays and may mean you wait longer for your payment. Please allow four weeks for your claim to be paid before chasing progress HMRC Gift Aid audits HMRC makes limited checks before making any Gift Aid repayments. It selects a number of charities for audit to ensure that the scheme is being used properly and that any repayment claims made are accurate. If your repayment claim is selected for a review, it does not necessarily mean that HMRC believes the claim is wrong or that there is suspicion about anything to do with the claim or your Group. HMRC wants to help you to get things right and will help your Group to make further repayment claims if it is found that less tax has been claimed than was due.

8 The audit procedure If your Group is selected for audit, a member of the audit team will contact you at least four weeks in advance to arrange a convenient date and venue for the audit. The main part of any audit is a detailed review of the documentation associated with a claim, including Gift Aid declarations and banking records. You will be advised in advance about: the records that the auditor will need to see during the visit whether the auditor will review all of the records supporting a claim or just a sample HMRC will need to be satisfied that your records properly support your tax repayment claims. The review will look at whether: the tax repayment forms were properly completed from your charity s records there are valid Gift Aid declarations held for all donations on which a Gift Aid tax repayment is claimed the donations meet the Gift Aid requirements any benefits provided for Gift Aid donors are within the allowed limits an audit trail exists to link tax repayment claims to individual donations and to Gift Aid declarations the amount repaid has been received by your charity and paid into the charity s bank account What happens if HMRC finds errors? On the day the audit ends, the auditor will talk to you about exactly what has been reviewed and what was found. The same information will then be included in a letter summarising the audit findings and what action your Group may need to take. If less tax has been claimed than was due, HMRC will help you to make a further repayment claim. If the auditor can t validate a tax repayment claim and, as a result, you have been paid too much tax, the problem will be explained to you as well as an explanation of the formal process that needs to be followed in order to recover the tax involved. HMRC will then: provide a summary of the amounts of overpaid tax for all relevant years provide a printout of all interest due, up to a projected settlement date where appropriate, discuss the basis for any penalties that may be due offer to negotiate a settlement in writing which, when accepted by HMRC, would act as a binding agreement discuss any payment difficulties - where appropriate HMRC can agree an installment programme but the effect of interest means that this is likely to increase the total amount payable Contacting the HMRC Charities Helpline For more help you can contact the Charities Helpline on Tel (open from 8.00 am to 5.00 pm, Monday to Friday). Select option 6 for Gift Aid.

9 APPENDIX 1 Guidance Notes to Complete CHA1 Gift Aid Registration Document (England and Wales) Please note these guidance notes are written by The Scout Association and do not supersede any advice or guidance from HMRC. They are merely a guidance to assist the completion of parts of the form which some Groups have had problems with. The following gives guidance on the information to be entered into the relevant box if it is not clear from the wording on the form. Questions which are not ambiguous have no additional guidance. Questions 1 Enter the name of your Scout Group/District 5 Name of Regulator as your Group is in England this will be the Charity Commission, but only if your Group has registered. All Scout Units are independent charities. However, most are not required to register with the Charity Commission as they have been excepted by a ruling of the Charity Commission. Scout Units only have to register if their income is more than 100,000 pa or they have a Permanent Endowment (a fairly rare restricted interest in land/building, investment, cash or other asset which cannot be spent as income or sold to raise cash for the charity). It is no longer necessary for Scout Units to register merely because they may hold an interest in land. However, even excepted, unregistered charities can still be subject of investigation by the Charity Commission if there is proper cause for concern. Charity numbers If your Scout Unit is one of those excepted from registration you cannot use or cite the District, County or Association's charity number as your own. If you are having trouble convincing someone of your charity status (a bank, for example) we may be able to provide you with a letter of confirmation to assist. Please Keren Mallinson at keren.mallinson@scouts.org.uk Enter your own Group Charity Registration number. DO NOT USE The Scout Association Charity Number. 6 If you have not registered with the Charity Commission you may use the following wording. Scout Groups are exempted from the requirement to register exception will end/income test the Charity Commission in accordance with statutory instrument 1961 No Exception will end with income test. Scout Groups only have to register if their income is more than 100,000 pa or they have a Permanent Endowment (a fairly rare restricted interest in land/building, investment, cash or other asset which cannot be spent as income or sold to raise cash for the charity). 10. Rules/constitution This would be a copy of Policy, Organisation and Rules, more commonly known within the Movement as (POR). An electronic copy of this document can be sent. For full details please go to:

10 12 Yes 13 Yes 15 Yes A copy of your Group accounts must be sent with the application. 20 No 23 Suggested wording is as follows: The Group meets the Charity Commission's public benefit criteria under both the advancement of education and the advancement of citizenship or community development headings. 24 The details of every responsible person must be entered. This includes all trustees (i.e. Group Executive members) so several pages will be needed. Nominee Information Questions It is unlikely any Scout group will need to complete this section. If you feel you need to please contact HMRC for further guidance. Charities Helpline on Tel (open from 8.00 am to 5.00 pm, Monday to Friday). Select option two for registering a charity for Gift Aid or charitable status.

11 GIFT AID DECLARATION I would like YOUT GROUP NAME GOES HERE to treat my donation / membership subscriptions as a Gift Aid donation from today s date forward and for the previous six financial periods (if applicable). I understand that I must advise you if I do not pay Income Tax or Capital Gains Tax at least equal to the balance they reclaim on my donations. SURNAME INITIAL ADDRESS POST CODE SIGNED: DATE: Notes: 1 You must pay an amount of income tax or capital gains tax at least equal to the tax we reclaim on the payments (currently 28p for every 1 you give.) 2 You can cancel this declaration at any time by notifying us. 3 Please notify us if you change your name or address.

12 How to complete Form ChV1 HMRC Charities Variations This guide will help you complete the HMRC Charities Variations Form (ChV1). You may find it easier to print this guide so that you can refer to it as you complete the form ChV1. This form can only be used by UK charities, Community Amateur Sports Clubs (CASCs) and other organisations entitled to UK charity tax reliefs (all referred to as 'charities' on this form). This form makes sure HM Revenue & Customs (HMRC) holds the right details for your organisation which helps when processing repayment claims, paying tax back to you, and dealing with other correspondence. Use the ChV1 to tell HMRC if there is any change to: the contact details for your organisation the authorised official's details (someone in your organisation authorised to deal with your tax affairs) the responsible persons' details (someone with legal responsibility for running your organisation) your nominees' details, including bank or building society account changes your bank or building society account details Giving new information If you have not already provided HMRC with your charity's bank details, please do so as soon as possible, using this form. You need to ensure that your bank can accept Bacs payments. If you are unsure whether or not your bank can accept such payments please check with your bank. You can also use the form to tell HMRC about any other changes you think HMRC should know about, for example changes to your constitution. If you haven't told HMRC about your charity's 'responsible persons', please provide them using this form. Complete the section 'Changes to the responsible persons details.' In this guide: Before you start Check if you need to tell your regulator about the changes first. A regulator is a body that regulates or sets the rules for your type of organisation, and checks that your organisation is following them. For some changes, such as a change in the name of your organisation, you need to get consent from your regulator before you notify HMRC that your details have changed. For example, if your organisation is based in England, and wishes to change its name, you may need to get consent from the Charity Commission for England and Wales first. Ensure all authorised officials and responsible persons in your organisation have read the 'fit and proper persons' guidance before completing this form. This guidance explains the need for charities to ensure that their managers are suitable to hold such positions and, in particular, that they haven't been involved in tax fraud or disqualified from being a charity trustee. It also includes a model declaration that charities can ask their managers to sign. The trustees, directors or other members of the management committee of your organisation are wholly responsible for the accuracy and validity of any claim made on their behalf by a nominee. You should give careful consideration to the suitability of each and every person you authorise to act on behalf of your organisation. Notes to help you complete the form Form ChV1 is designed to be downloaded, saved on your computer and filled in on screen. This guide provides help with some of the sections on the form.

13 Please complete this form in English; if you don't, it will take HMRC much longer to update your details. If any documents you send supporting the form, such as minutes of meetings, are not in English please provide a translation of those documents as well. You need to complete every relevant part of the form. If the form is not complete or correct, HMRC may ask you to send in a new form. When you have completed the form you need to tick boxes at the end of the form to show which sections you have completed. When you print the form out only those sections for which you have ticked the box will print out. This is normal. In addition, some information you did not enter on the form will appear on the printed version. Again this is normal and this information helps HMRC process the form more quickly and easily. The following sections have the same titles as the parts of the form they refer to. About your organisation - current information held by HMRC Use this section to enter the current details for your organisation before any changes were made. The boxes in this section must be completed to show the details already held by HMRC. For example, if you say later in the form that the charity has changed its name please put the old name in box 1 as that is the name that HMRC will currently have in its records. Box 2 asks for your HMRC Charities reference number. This is the reference that your organisation was given when it registered for UK charity tax reliefs with HMRC. It normally starts with one or two letters followed by some numbers, such as AB Do not enter your Charity Commission number if you are registered with them - this number does not have any letters at the beginning. The address you need to enter in box 5 is the premises or office address for your charity, if you have one. If your charity is a company, you must give the registered office address here. If your charity does not have offices or premises please enter a contact address and repeat this information in box 6. Contact details Please always complete this section to show the up to date contact details for your charity or CASC, even if they haven't changed. You should enter the address, phone number and (if you have one) you want HMRC to use, as this is how HMRC will contact the authorised official with any questions, and the address to which any payment notifications will be sent. You must fill in boxes 6 and 7 before you print off this form. About the changes Use this section to tell HMRC about the information you want to change. You only need to enter details where the information has changed or where you need to notify HMRC of your bank account details or responsible persons details. If you have not previously provided details of your bank account then you need to do so when completing this form. If you have not already provided details of 'responsible persons' to HMRC, please complete the section 'Changes to the responsible persons details.' All other boxes can be left blank. You must enclose copies of supporting documentation that provides the authority for these changes to be made, along with the form. For example, minutes of the trustee meeting where the decision was taken to change the name of the organisation, or copies of an amended governing document. Changes to the charity Use this section to tell HMRC if any of the details of the charity have changed. If your official address or registered office for your charity has changed, give the new address here. If your charity does not have offices or any premises but the contact address has changed please enter your new contact address here, which will be the same as the address shown in box 6.

14 Changes to authorised official's details Use this section to tell HMRC if any of the details of the authorised official have changed. The authorised official is the person within your organisation who is authorised to deal with HMRC about your organisation's tax affairs and, where necessary, submit tax returns. This is the only person within your organisation who is authorised to submit Gitf Aid repayment claims. HMRC will contact this person if they have any questions about your organisation. You can appoint two authorised officials if you wish just in case one is not available when HMRC needs to contact them. If you need to enter the details of another authorised official, use the 'Add another authorised official change' button to add their details. Each of the named people should sign the form. Changes to responsible person's details Use this section to tell HMRC if the details of a responsible person have changed or if you need to notify HMRC of who the responsible persons are for the first time. A responsible person will be a person with legal responsibility for running your organisation and includes: Trustees Directors (where your organisation is a company) Other persons in controlling positions in your organisation such as the Treasurer, Company Secretary, Management Committee members and Financial Controller. HMRC needs to know who the 'responsible persons' are for your charity. You need to nominate between two and four responsible persons. Together with the authorised official, they will be the only people allowed by HMRC to change details on your organisation's tax records. If you registered for UK charity tax reliefs with HMRC before July 2010, HMRC may not have a record of your responsible persons. Please include their details here. Providing this information helps HMRC ensure that its records are up to date and repayments are made correctly. If you need to enter the details of another responsible person, use the 'Add another responsible person change' button to add their details. Each of the named people should sign the form. If the charity is managed by a corporate trustee, for example a Trust Company or a Trust Corporation, you should enter the name of the corporate trustee showing the position as 'corporate trustee.' Enter the address of the corporate trustee in the box headed 'private or hone address.' Do not complete the date of birth or national insurance number boxes. New bank or building society details for your charity Use this section to provide details of the organisation's bank account into which you want HMRC to pay Gift Aid repayments and any other tax repayments. You need to complete this section if the bank account details have changed or if HMRC has not been provided with the details in the past. HMRC will make repayments to your organisation into this bank account using the Bacs system, so you need to ensure that your bank can accept such payments. If you are unsure whether or not your bank can accept Bacs payments please check with your bank. When entering the date on which the account was opened, please enter an approximate date if the account has been in existence for a long time and you are not sure when it was opened. Changes to the nominee and collection agency details Use this section to tell HMRC if your charity's nominees or collection agency details change. A nominee is an individual or organisation outside your organisation who you authorise to submit Gift Aid or other tax repayment claims on your behalf. If you have changed your nominee or collection agency you should put the name of the new organisation or individual in box 36. If you name an organisation, you should enter the name of an individual in that organisation in box 37. A nominee organisation or collection agency needs to provide the names of people within the organisation who are authorised to deal with HMRC and these people should sign in box 45.

15 A nominee is an individual or an organisation, outside your organisation, who you authorise to submit Gift Aid or other tax repayment claims on your behalf. A collection agency is a nominee that submits large numbers of Gift Aid repayment claims and that has been recognised by HMRC as a collection agency. If there is a change to the collection agency you need to show the details of this on the form in the same way as for a nominee except that you do not need to provide bank account details as these are already known to HMRC. You should enter the collection agency reference in box 38 and you can then leave boxes 47 to 52 blank. The collection agency will provide you with their reference if HMRC has given them one. The reference should be in the format [CAC xxxxx} If you want HMRC to exchange other information with your nominee about your organisation's tax affairs, so that your nominee is acting as an agent, you will need to provide additional authority for this by completing Form 64-8 'Authorising your agent' and submitting it to HMRC. Without it, HMRC cannot discuss other tax issues with your nominee. The nominee's account details Use this section to tell HMRC if your nominee's bank account details have changed. You do not need to fill in this section unless you want the nominee to receive payments on behalf of your organisation. When you ask for repayments to be made to your nominee HMRC will make repayments to your organisation into the nominee's bank account using the Bacs system so you need to ensure that the account shown in this section can accept such payments. When entering the date on which the account was opened, please enter an approximate date if the account has been in existence for a long time and you are not sure when it was opened. If you need to enter the details of another nominee, use the 'Add another nominee change' button. Authorised officials, responsible persons and nominees who have ceased to act Use this section to tell HMRC about authorised officials, responsible persons and nominees who have stopped acting for your organisation. Click on the '+' button to add another row if you need to enter details for more than one person. Any other changes Use this section to give details of any other changes you want to tell HMRC about. This could include changes to managers not already mentioned on the form, changes to your constitution or a change of accounting period. If the charity changes from being a trust to being a Charitable Incorporated Organisation you should show this change in this box. Declaration This declaration must be signed by two people from your organisation with the role of authorised official or responsible person who were in post before the changes were made that you have told HMRC about on this form. This means as existing officials, they authorise these changes. The declaration must not be signed by any new responsible person or authorised official you have told HMRC about on this form in boxes 9 or 21. The declaration should not be signed by a nominee, collection agency or agent either. If there are any problems with this, for example because several of the officials within your organisation have changed, please arrange for two responsible persons, or a responsible person and an authorised official to sign the form and send a covering letter explaining why the people signing the declaration are also shown elsewhere on the form.

16 When you have completed this form When you have completed the form you need to tick the boxes in this table to show which sections of the form you have completed. When you print the form out only those sections for which you have ticked the box will print out Where to send your completed form Once you've completed your form, check it carefully as any missing information may mean HMRC will have to ask you to submit a new form. When you have finished completing the form, print it out, and arrange for two people from your organisation with the role of authorised official or responsible person to sign and date it. For security reasons any new authorised officials, responsible persons or nominees named in boxes 10, 17 or 30 on the form need to sign the form at the end of those sections. Do not make any other handwritten amendments to the form. Keep a copy of the form for your records, or in case there are any queries. Send the form to: HMRC Charities Variations Team St Johns House Merton Road Liverpool L75 1BB Allow at least a month for HMRC records to be updated before sending any repayment claims or tax returns using updated organisational detail. Any repayment claims received by HMRC in the meantime will continue to be paid using the old details HMRC currently hold.

17 How to complete Form R68(i) Gift Aid and Tax Repayment Claims This guide will help you complete the HMRC Gift Aid and tax repayment claims form (R68(i)). Form R68(i) can only be used by charities, Community Amateur Sports Clubs (CASCs) and other organisations entitled to charity tax reliefs (all referred to as 'charities' in this guide) Use the form to claim tax repayments on Gift Aid donations or to reclaim UK tax deducted from other income, such as bank interest. Please read all the notes carefully. It is essential that the information you provide is complete and correct. Before you make a claim Please ensure that you are registered with HM Revenue & Customs (HMRC) and have an HMRC Charities reference number. If you do not have a reference number you will need to register by completing form ChA1 HMRC Charities Application Form and wait for HMRC to send you a reference before you submit a claim form. You must have an HMRC Charities reference number to complete for R68(i), as you need to fill in your reference number on the form in order to generate the schedules on which you show the amounts claimed. If any of your Groups details have changed, including a change to the name, bank account details, authorised official, responsible persons or nominee, you need to submit details of the changes on form ChV1 at least a month before you submit your repayment claim. This time delay is needed to allow time for the changes to be made to HMRC records. If any of the details on your claim do not match the information held on HMRC records your claim will not be paid until form ChV1 has been submitted and processed by HMRC. Time limits Claims must be made within four years of the end of the accounting period or tax year to which they relate. Claims made late will not be repaid. For example, a donation on 1 December 2010 falls in the tax year 6 April 2010 to 5 April 2011 for a charity that is a trust. So a Gift Aid claim can only be made in respect of that donation before 5 April If the charity was a company with an accounting period ending on 31 December, the donation would fall in the accounting period ended 31 December 2010 and so the Gift Aid claim would have be made by 31 December Notes to help you complete form R68(i) The R68(i) form is designed to be downloaded and saved on your computer and filled in on screen. Prompts will appear if you try to enter invalid information in a box. When you first look at the form on screen, you will not see the schedules as you would in a paper version, as they are generated by the form as you fill it in. The form also automatically completes boxes according to your answers, for example, when you enter your accounting period, the form automatically produces schedules for the correct periods. Don't try to amend any boxes that are completed automatically. Printing out the form When you have finished completing the form you need to print it and then sign and date it. The printed version of the form looks different to the one you will see on screen. For example:

18 the Declaration and Signature section do not appear on screen but are shown on the printed form. The 'tax back calculation and amount of claim' section appears on page 3 of the form as you fill it in on the screen, but it appears on the front page when the form is printed. This helps to make the form easier to process by HMRC. Please do not make any other handwritten amendments to the form after you have printed it as this will delay processing your repayment. The following sections have the same titles as the parts of the form they refer to. About your organisation The details of the charity or Community Amateur Sports Club (CASC) that you show in this section must be the same as those already provided to HMRC. If the details have changed you need to notify HMRC on form ChV1 before you submit your claim. Please wait at least a month after you have submitted form ChV1 before you send in your repayment claim. The delay between submitting the two forms is needed to allow time to update the HMRC record. If you are submitting your repayment claims on a disc (CD or DVD) rather than on paper schedules attached to the form you should put a cross in the box headed 'are you submitting claims on a disc?' You can submit claims on a disc if your claim includes more than 200 entries, but you should read the guidance in the 'Gift Aid schedules' section below to make sure that your claim is in an acceptable format. Your accounting period You need to enter the date on which your accounting period ends so that the form can automatically produce schedules for the correct periods and calculate interest correctly. An accounting period is a period of time - usually a year - at the end of which you prepare your accounts. The date to enter on this form depends on whether your charity is treated as a trust or a company for tax purposes. All UK CASCs and most UK charities are treated as companies for tax purposes. For charitable companies, the most common accounting periods end on 31 December or 31 March but you need to check this for your particular charity. Your charity will be treated as a trust if it was set up by a UK trust deed or a will. In this case you must treat your accounting period as ending on 5 April even if you prepare your accounts to a different date. You also need to enter 5 April if your organisation was set up outside the UK. Tax back calculation and amount of claim When you print the form this section will appear. You do not have to enter anything in this section as it is completed automatically when you fill in the schedules with details of your claims. This section shows the amount of the tax repayment due on the donations and income shown on the form. The amount that you receive as a repayment may be more than this figure if your repayment qualifies for 'transitional relief.' Where Gift Aid is claimed for periods between 6 April 2008 to 5 April 2011, HMRC will pay an extra 3p for every pound you claim in Gift Aid repayment, provided that the R68(i) is received within the following time limits: for charitable trusts, up to two years after the end of the tax year to which the claim relates for charitable companies or CASCs, up to two years from the end of the accounting period to which it relates. Payment details Payments will be made direct into the account of your charity or CASC, or into the account of a nominee or collection agency that you have told HMRC about. Payments will be made by Bacs. If HMRC doesn't hold any details of a bank account they will send you a cheque but please note that HMRC is withdrawing cheque repayments for Gift Aid. If you have not supplied HMRC with your

19 organisation's bank account details please complete and send a ChV1 providing up to date bank details to ensure any future repayments are made to the correct account. If your bank details have changed since your last claim please notify HMRC before sending in a new claim using the form ChV1 (HMRC Charities Variations Form). You should leave at least one month between sending the ChV1 and submitting your claim. This time delay is needed to allow HMRC records to be updated Declaration and signature This section will appear when you print the form out. It does not appear on screen. This form must be signed by the person named in the 'about your organisation' section who should also be the person you have told HMRC is the authorised official, nominee or collection agency. Gift Aid schedules When you click the 'create schedules' button, the schedules you need to complete for your repayment claim will be generated. Your claim may include donations or other income received in more than one accounting period or tax year and the amounts claimed must be entered in the schedule for the correct period. Schedules for out of date periods will not be generated - late claims cannot be made. Aggregating a claim You can add together donations of less than 10 on the Gift Aid schedule, subject to a maximum total of 500 per line within a claim. This is known as 'aggregating a claim' and means you don't have to list all the names of the individual donors who have given less than 10 on the schedule. You must have a Gift Aid declaration from each donor together with records itemising each individual donation included in the total. In the 'name of donor' box you should enter a descriptive label that will enable you to find the relevant Gift Aid declarations, such as the name and date of the event at which the money was donated. The aggregated claim must not include donations associated with admissions to charity visitor attractions or amounts paid for sponsored events. You also need to put a short note in the additional information box at the end of the form stating you have aggregated your claim in accordance with the guidance. Claims for sponsored events If your claim includes amounts paid for sponsored events for which there are a large number of donors, you do not need to include individual donor details. Instead, the schedule should list the amounts on each participator's sponsor form where Gift Aid declarations have been made. For each entry on the R68(i) Gift Aid schedule you should identify the particular sponsor sheet, either by showing the participator's name or by using an individual reference. The entry in the 'Total donation(s)' column should be the total of amounts on the sponsor sheet in respect of which Gift Aid declarations have been obtained. Again if you do this you need to include details in additional information box at the end of the form. Using your own schedules If your claim contains more than 50 separate entries and you wish to use your own schedules you may do this by attaching them to the completed form, although you must enter the totals from each schedule on the R68(i). The paper schedules must be typed, not handwritten, and compiled using a computer program, such as Microsoft Excel, that automatically adds the figures up. If your claim contains more than 200 separate entries and you wish to use your own schedules you may submit the information on a disc although you must enter the totals from each schedule on the R68(i). You need to tick the box in the 'about you' section on the front of the form to show that you are sending a disc with your form and the disc must satisfy the following requirements. The disc must provide information in the following format: Field 1 Donor ID Field 2 Donor Name