Getting Started with Gift Aid

Gift Aid is a UK specific method for charities to be able to claim back the tax on a donation. It is specific to the UK and therefore infoodle has this feature only for UK clients. This is available as a package on its own or as part of the other infoodle packages such as CRM or Finance.

If you have just the Gift Aid package then this provides the features and tools you need in order to gather the contact and transactional data from your donors either directly or via xero. Once gathered, you are able to file the claim either electronically with the HMRC or using the GASD excel spreadsheet supplied by HMRC together with a download of data from infoodle. Once a file has been made, you can create an invoice directly in Xero for the claim amount.

Things to Consider When First Starting

1. Record the addresses consistently in Xero

The key is being able to separate the House name (or number) from the rest of the first line of address for UK households

• First line of address needs a standard separator e.g. a comma, between the household name (or number) and the rest of the address. Or use the first line of the address for the house name (or number) and the second line for the rest of the address. This step isn’t mandatory – but if you do it correctly then infoodle will process the addresses for you.
• Post code. It’s a requirement that postcodes are valid. They must contain a space between the first and last part of the address. These are validated for formats by infoodle before being submitted and unless they are correct, the submission cannot take place.

2. Login to infoodle for the first time

You are asked for:

• The date you want to start the first claim. This can be any date, before, current or after the current period. You can edit these dates later.
• How many months between each claim e.g. if you want to file quarterly you select 3 months, monthly 1 month etc.
• Click Save and you are taken to the page for this claim. It's going to be empty as there are no transactions at this point.

3. Prepare your data in Xero.

• Identify the Bank Accounts, Account codes that you use. Infoodle processes Tracking Categories, which requires Infoodle Finance Package.

4. Configure settings relating to Xero and infoodle

• Click Finance > Transaction Processing > Configuration > Xero Setup > Contact Settings

How infoodle Processes Contacts

• Choose to get infoodle to Automatically add to infoodle to match Xero for the Build infoodle from Xero. This way all contacts needed will be created in infoodle as needed.
• Select the way you have configured your addresses in Xero in respect to the House name (or number).
• The other options are up to you as to whether you want infoodle or Xero to be kept up to date with contact details.
• Click Save.

How to Connect infoodle to Xero

• Go to: Finance > Transaction Processing > Configuration > Xero Setup
• Select Connect to Xero
• Select Check and Authorise. This will ask you to log into your Xero account. Make sure you choose the correct organisation in Xero.
• Once successfully connected, you are asked if you want infoodle to import all your contacts from Xero. If you do, then click Import Contacts.

• Once done – you can return to the Connect to Xero tab and import the contacts.

Set Which Transactions to Import

• Select Xero Schedule
• You can choose which bank account and which account codes you want infoodle to import identified in Step 3. At the bottom of the screen is Add along with a date you want to start import from. Click this to ensure the transactions are imported.

Infoodle will start to import data in about three hours, and every three hours after that. With the above settings, infoodle will create the contacts, import the transactions and process them ready for you to add to your claims.

Preparing Contacts

1. You will need to get your contacts into infoodle by using the ‘Add’ function in the top right of any page in infoodle - designated by the '+' icon

You will also need to get the transactions you want to claim into infoodle. You can enter them one at a time, or you can import from statements and reconciling them.

2. Each person who has given you permission to claim their Gift Aid needs their data adding to infoodle. Using the search feature at the top of the screen.

• Click the Profile Cog Wheel,
• Click Finance.
• Click Gift Aid
• Click Add and add the details.

Without this step, no data is claimable.

Starting the Claim

1. Select Finance and Claims. This will show the list of claims you are preparing. Beside the current one – select Action then Review.

There are three areas of errors

1. The dates selected (start and/or end) are not passed. Either adjust the dates or wait for the period to be in the past.

2. There are no transactions in the ‘claimable’ section. Either add transactions, or check and review the people who have given donations and check they have the right Gift Aid settings. For a transaction to be claimable, the account code that the transaction is connected to must be set to 'tax reclaimable' in Finance / Account codes. Also, for the transaction type and it must not be an 'in-kind' transactions.

3. The address data isn’t correct. Click Errors to be taken to a screen where you can edit these details. Note that a household name (or number) and a valid post code is required for all UK addresses. Overseas addresses don’t need these details but they are helpful!

Starting the Claim - cont.

2. When reviewing a claim:

At any time you can Save to Draft. This marks these records as in draft claim mode so you can review it and check changes later. This step is optional.

Once there are no errors showing you must save the claim as ‘final’ by clicking Save then Final to return to the claims screen.

3. Once a claim is in the Final status, you can select Action and choose File to HMRC. This takes you to the review screen. Choose those you want to file your claim.

4. If you choose: File Directly to HMRC:

• Make sure you have configured all the Gift Aid settings by selecting Settings. You will need the correct details for the charity and the authorising officer. All fields are required and are validated by the HMRC at the time of filing.
• Once the settings are complete, you can select Submit to HMRC
• If all is successful you will receive a message saying it has been filed. Otherwise errors are reported which should be clear to adjust.

5. If you choose File Manually:

• Select the Download button and you receive a file that can be opened and copy/pasted into the GADS file received from the HMRC.
• You now need to submit this to the HMRC using their own website – outside of infoodle.
• Once completed you can return to infoodle and click Mark this Claim as Filed. You need to do this before you can prepare the next claim.

6. Once a claim has been filed, you have the option to create the invoice. Select Settings to check the Xero settings such as the contact name and account code to file it against.
   
   
   • From the Claim screen – or Review Claim screen – you can select Create Invoice and infoodle will create an invoice in your Xero account. If there are any mistakes you can delete the invoice in Xero and repeat the process in infoodle.