Gift Aid Explained
What is Gift Aid?
If you are a UK taxpayer, the Gift Aid scheme allows a charity to claim back the tax (from the government) you have already paid on your donation.
How do I Gift Aid my donation?
The donor has to make a 'Gift Aid Declaration'. This can be as simple as ticking the Gift Aid box on the donation form. Or email, fax or phone the charity telling them to claim the tax back on your donation/s.
Who is eligible?
You are eligible to authorise a charity to reclaim the tax on your donations if:
1. You are an individual UK taxpayer (ie not a company), and
2. The amount of tax that the charity will reclaim does not exceed the amount of tax you have paid in that tax year.
Who receives the tax refund?
The charity you give your donation to. Remember to make the Gift Aid Declaration.
Who pays the tax refund?
The government agency HM Revenue and Customs (HMRC) - from the tax that you have already paid.
How much is the tax refund?
The charity will receive 25p for every £1 that you give as donation. so the charity will actually get £12.50 when you only donate £10 to them. This is 25% on top of your donation.
What if I am a Higher Rate taxpayer?
If you pay tax at the Higher Rate, you can claim the difference between the higher (40% or 45%) and basic rate (20%) tax on the 'grossed-up' amount through your tax return. Example: If you donate £100 and Gift Aid it, the charity can claim an extra £25, hence the total value of your donation to the charity is £125 - and you can also personally claim back:
£25.00 - if you pay tax at 40 per cent (£125 X 20%)
£31.25 - if you pay tax at 45 per cent (£125 X 25%)
Can I cancel my Gift Aid Declaration?
You can cancel by notifying the charity. From the date of your cancellation, the charity will no longer be able to claim Gift Aid on your donations.