Getting Started with Gift Aid:

Recording Declarations

The church must keep a clear auditable record of Declarations, to be able to show that each donor has in fact made an appropriate declaration. In addition to written Declarations, Declarations may be made in many ways, including methods such as computer declaration template linked to donors banking details, emailed copy of declaration, scanned image of declaration or even a copy of mobile phone text message! However, transcribing of the declaration given by a donor into a database is not acceptable to HM Revenue & Customs (formerly Inland Revenue), as there is no link to the donor. In practice, churches will nearly always use a written Declaration - see Declarations for more details. Parishes on the Diocesan Scheme have their Declarations stored centrally.

Validation of an invalid Declaration

If for some reason, the records are insufficient to show that a particular donor has made the Declaration, the Declaration will be deemed invalid, and the church will have to repay back the tax received, including interest and possibly penalties.

However, the church can validate the invalid Declaration by sending the donor a written statement. This can also be used to confirm a declaration which has been made orally. The written statement should show:

• all the details provided by the donor in their declaration, ie
  - the donor’s full name
  - the donor’s full address
  - the donor’s post code
  - the church’s name
  - a description of the donations to which the declaration
     relates
  - confirmation that the donor wants his donations to be   Gift Aid donations
• a note explaining that the donor must pay an amount of income tax or capital gains tax at least equal to the tax deducted from his or her donations
• the date on which you send the written statement to the donor
• a statement giving the donor 30 days from the date of the written statement in which to cancel the Gift Aid declaration.

An oral Declaration is not effective unless and until you have sent the donor a written record. Once you have sent the written record, you will be able to reclaim tax in respect of any donations covered by the declarations, even if you received them before you sent the written record. Note that if the donor cancels within 30 days, the declaration will be treated as if it had never been made. Letters returned with "return to sender" or "not known at this address" count as cancellations.

Click here to download an example letter which could be used as the written record.

To find out more, click on the following links:
Cancellation & amendments
The benefit rules

Or go back to
Getting started with Gift Aid
Declarations