Additional steps required if overpayment received from HMRC and the money should be refunded.
- These steps should only be followed for the particular circumstances where the whole amount for split gifts has already been claimed.
You can identify this because the money paid my HMRC exceeds the "Claimed Amount" on the Submit Gift Aid Claim to HMRC grid
Raiser’s Edge 7.93 Patch 4 or higher must be installed before proceeding
The following steps are required because the tax claim amount shown in Raiser’s Edge is actually correct, therefore the Adjust Tax claim option should not be used for these gifts to refund HMRC.
- Create a "dummy" individual constituent record in Raiser’s Edge with a "dummy" address and add a "dummy" Gift Aid Declaration via the Declaration Information button on the Bio 1 screen
- You may want to untick the Send Mail button available via the More button on Bio 1, to ensure mail is not sent to this constituent
- You may also want to add a solicit code or attribute - also to ensure this constituent is not included in any mailings.
- Set Declaration Start Date as 06/04/2000 and set the Indicator as Written.
- Save and close the constituent record to ensure the information is written to the database
- Create a gift query to identify the amount to be refunded, as split gifts may have been present in more than 1 claim that has been submitted.
The query would be -
Gift Information, Tax claim number for one of the following options
- The number of the claim you are interested in (to check a specific claim)
- One Of - a list of claims that have been submitted via the Submit Gift Aid Claim option in Admin (to check all claims submitted using this option)
- Blank (to check gifts which have not already been claimed)
AND Gift Aid Qualification Status equals Partly Qualified for Gift Aid (which is the status when only a portion of the gift is qualified)
AND Fund, Tax Claim Amount equals 0 (to identify the portion of the gift that should not have been claimed).
Additional criteria can be added if necessary, to limit the results.
For example, if interested in a particular date range for those gifts that have not yet been claimed where the Gift Date is in the last 4 years.
On the Output tab include the following fields along with any constituent fields you may wish to show in the results -
Funds, Split Amount (the portion of the Gift Amount to this Fund)
Funds, Tax Claim Amount (should be zero as this is the portion that is not qualified for Gift Aid).
- Check the query results are correct and export the query results to Excel.
Use the SUM function in Excel to calculate the total for Split Amount.
Calculate the tax amount for this total which will be checked when the gift is added to the dummy constituent.
Note: We provide links to third-party websites in an effort to help you resolve your issue. We are not responsible for the information on third-party websites, and we cannot assist with implementing resolutions from these websites.
- Open the dummy constituent record and add a Cash gift for the amount calculated in Excel
- Set the Acknowledge field to Do Not Acknowledge to ensure a thank you letter is not produced.
- Should you post data from Raiser's Edge to an Accounts package then you may want to consider setting the NL Post Status on the Miscellaneous tab to Do Not Post, so the gift is not included in the information passed to Accounts
- On the Tax tab check that the Tax Claim Amount matches the total to be refunded to HMRC, based on the amount overpaid by HMRC and the sum of Tax Claim Amount in Excel.
Note that due to rounding differences, you may have to change the Gift Amount slightly so that this tax claim amount matches the amount to be refunded.
- Save the gift and then, on the Tax tab, enter a dummy tax claim number so this gift appears to have already been claimed, then save and close the gift.
This should not be a "live" tax claim number that you have previously used so, for example, you could enter REFUND2014.
- Important - if the amount to be refunded is more than you would typically expect in a Gift Aid claim, then you may want to consider entering more than once gift and splitting the refunding over more than one claim.
- Re-open the gift and use Adjust Tax Claim to identify that this gift should be refunded to HMRC.
Do not create a replacement gift.
If more than one gift entered so that refunds are split over more than one claim then only refund the gift that should be included in the next claim.
- Process Gift Aid as you would normally and select the option to include Both tax claims and refunds when running the R68 Report.
- Repeat step 6 and 7 in following claims if more than 1 gift created in step 5, until all money has been refunded to HMRC.
- When all claims that included the refund for split gifts have been submitted to HMRC you may want to consider deleting the "dummy" constituent as there is no longer any money outstanding to HMRC.