|Gift Aid Explained.
Gift Aid allows individuals who are subject to UK income tax to complete a simple, short declaration that they are a UK taxpayer.
Any cash donations that the taxpayer makes to the charity after making a declaration are treated as being made after deduction of income tax at the
basic rate (20% in 2011), and the charity can reclaim the basic rate income tax paid on the gift from HMRC.
For a basic-rate taxpayer, this adds approximately 25% to the value of any gift made under Gift Aid.
Higher-rate taxpayers can claim income tax relief, above and beyond the amount claimed directly by the charities.
The rate of the relief for higher-rate taxpayers in 2011 is usually 20%, the difference between the
basic rate (20%) and the higher rate (40%) of income tax, although recipients of dividend income (taxed at 10% and 32.5%) can achieve a higher rate of tax relief (22.5%).
Originally, declarations had to be made in writing. Declarations can now be made orally, but the charity must confirm the declaration in writing and keep
a copy of the confirmation. If the taxpayer incorrectly makes a declaration, the charity is still able to reclaim the tax that should have been paid on the gift.
Gift Aid can only be reclaimed on money donated by UK taxpayers. Non-UK taxpayers can make donations. However as HMRC is making payment to the
charity but there has been no source tax paid by the donor, HMRC has power to collect the equivalent sum from the donor.
Gift Aid is only for donations by the donor. It cannot be claimed on other people’s donations – for example, if someone collects money from several people,
each person would have to make a Gift Aid declaration for their portion. It also cannot be claimed for money where the donor received something in return,
e.g. purchasing goods from a charity store, or buying a ticket in a charity raffle, as these are not strictly donations. In the case of donated goods,
Gift Aid can still be claimed via the donor of the goods, not the purchaser.
To comply with HMRC guidelines, every penny we send Fr Themi
for his missionary work must be written into a “Grant” and the funds can only be spent along the Grant Application guidelines.
For example, if we apply funds to build an Orphanage, these funds can only be spent building the Orphanage;
if we apply funds to feed the poor, Fr Themi is limited to the figure and method in the grant as to how he spends the funds.
On the 24 November 2017 we received from The Charity Commission for England and Wales our Registered Charity Number 1175916
Paradise 4 Kids, has the ultimate authority to use donor contributions at its discretion in furtherance of its exempt purposes.
We look forward to putting your contribution to good use to support those suffering from poverty, violence, sickness, and a
lack of education in Africa and throughout the world