How much can the Cathedral claim back from the Inland Revenue (IR)?
The current basic rate of Income tax is 20 pence in the pound. If you earn £100 then you will pay £20 in tax. This leaves you with £80. If you give that £80 to the Cathedral then the Cathedral can reclaim the £20 tax that you have paid on it. How does the Inland Revenue know how much tax to return to the Cathedral? At the end of every financial year (5th April) the Cathedral Gift Aid Officer (GAO) submits a list to the Inland Revenue stating the name of all those parishioners who have signed Gift Aid forms. Against each name he states how much the Cathedral has received from the parishioner. Based on this list the Inland Revenue returns the tax paid to the Cathedral. How does the Gift Aid Officer know how much each parishioner has given to the Cathedral? The Gift Aid Officer has confidential access to the Cathedral bank statements. From these he can record all the Standing Orders and cheques given to the Cathedral over the year, add them up and submit the totals to the Inland Revenue.
