Money Matters

 

Financial Review

As of the end of October we are reporting an unexpectedly healthy surplus on our general account. Unfortunately, this is not due to any increases in income but rather reflects a number of underspends against budgeted expenditure. Some of those underspends are “one- off” events and will not recur next year.

Our other funds are reasonably healthy not least because fabric expenditure has been modest this year. Not only that but we have received two payments, both last year’s and this year’s, from the third-party trust which makes annual contributions to our fabric fund. 

Our picture fund has been significantly enhanced by generous contributions from the Co-op community fund. These funds are specifically earmarked for community projects.
The special projects fund has also done well, being in receipt of a number of donations from various parties and contributions from events organised by the choir, whose efforts are geared towards funding twenty new chairs which have already been ordered and are scheduled for delivery in mid to late December. 

Gift Aid

Several long-standing members who have opted to pay by Gift Aid have expressed concern about the fact that since they are no longer tax payers, partly as a result of the sizeable increases in tax free allowances as well as the fact spouses can now transfer part of that tax-free allowance to one another – * see below - the church is losing out on the tax which it could claim back.

At present, it is not anticipated that the church will actually lose out as the increase in personal tax-free allowances has been mirrored by an increase in allowances for non-specific donations received by charities from £5,000 per year to £8,000. This means that the donations made by those members are still attracting a tax refund from HMRC.

* This refers to the fact that spouses who do not pay tax are now able to transfer up to 10% of their personal allowance to the spouse who does pay tax. This could increase the family income by up to £230 for the current tax year (£11,500 times 10% = £1,150 then multiply £1,150 by 20% = £230)

NB - if no claim for such a transfer has yet been made then the transfer can also be applied for in respect of tax years 2015/16 and 2016/17 which were worth £212 and £220 respectively. This could mean a potential windfall over the three tax years of up to £662 (£230 + £220 + £212).

Jim Henderson, Treasurer