The Methodist Church is a charitable body that is able to benefit from Gift Aid donations.
Gift Aid is a government initiative that allows charities to reclaim basic rate tax from the government on donations made by UK taxpayers. If a donor’s tax is paid in the UK, then Gift Aid is a simple way to increase the value of their gift to charity. Click here for further clarification on the Charitable Status of the Methodist Church.
The connexional finance team provide a Gift Aid bureau service to make claims to HMRC on behalf of Methodist entities. For a fee, local churches and other church bodies can send the paperwork and claims to the central Gift Aid Bureau, who will make the necessary claims with HMRC. For local churches that do not have their own individual HMRC registration and Gift Aid numbers, they can benefit from the Gift Aid scheme by submitting their claims via the bureau. Further information regarding processing and claiming Gift Aid can found in the Gift Aid and GASDS Guidance Notes April 2025
In addition to individuals' giving, the treasurer should keep a record of all cash giving to the church, such as weekly cash collections and other cash gifts. The HMRC permit tax reclaim on Small Gifts (£20 or less) under the GASDS (Gift Aid Small Donations Scheme) regardless of whether the giver pays income tax or not, up to a maximum of £8,000/year. Donations given electronically through giving stations can also be included as part of the GASDS submission.
Any Gift Aid claims must have a valid declaration from a taxpayer and these declarations need to be recorded and retained. It may be beneficial to use Gift Aid envelopes and Collection Books from Methodist Publishing. The amount given, the envelope numbers or details of payment made by standing order must be recorded. HMRC carry out spot checks on the paperwork and if the proper records are not kept, then the tax will need to be repaid and fines can be imposed.
Some churches have Gift Aid secretaries, who are responsible for managing the Gift Aid scheme to claim tax refunds on donations. They work in close cooperation with the church treasurer to ensure that all Gift Aid declarations are collected and processed correctly with the relevant authorities.
Declaration forms
HMRC states that any Gift Aid declaration issued by a charity will need to include the phrase:
"I am a UK taxpayer and understand that if I pay less Income Tax and/or Capital Gains Tax than the amount of Gift Aid claimed on all my donations in that tax year it is my responsibility to pay any difference."
Our Gift Aid declarations have been updated to reflect this change and are available to download here:
Advice and Help
If you have any questions or need guidance with your Gift Aid processing, please contact the Gift Aid Team on giftaid@methodistchurch.org.uk or 020 7467 3761.
FAQs
Is the Methodist Church is a charitable body that is able to benefit from Gift Aid donations?
Yes. If you pay tax in the UK, then Gift Aid is a simple way to increase the value of your gift to charity. For clarification on the Charitable Status of the Methodist Church, please see 'Charity Registration', and 'Charity Status' in the Minutes of the Annual Conference and Directory 2008, page 164.
Can anybody give through Gift Aid?
Yes, provided that you are a UK Tax Payer.
How can I go about giving through Gift Aid?
It is probably best to speak to the Gift Aid Secretary for your church or circuit to discuss the procedure used. It is possible to make donations in cash, by cheque and by standing order. Special giving envelopes are used for collection plate donations to make it possible to identify who has made the donations and make the claims. It is all done in complete confidentiality.
How will my donation qualify for Gift Aid?
In order for your donation to qualify, you must:
- be a UK taxpayer.
- pay at least as much Income Tax and/or Capital Gains Tax as the charity will recover on your donation in the tax year.
- complete a declaration to indicate that you are happy for the Methodist Church to recover the tax on your donation(s).
There are standard forms that should be used and the Gift Aid Secretary for the church or circuit will be able to provide full details.
How much does the Church gain financially?
A donation of £10.00 under Gift Aid is equivalent to a donation of £12.50 to the Church.