Gift Aid Guidance
What is it?
Gift Aid is a tax relief whereby UK charities can reclaim 25% in tax on every eligible donation made by a UK taxpayer. Thus a donation of £10 becomes worth £12.50 to the charity.
What do I have to do?
When you donate, you’ll be asked to confirm whether or not you are a UK taxpayer. Please note that Gift Aid can only be reclaimed on donations made by individuals who pay UK Income or Capital Gains Tax of an amount at least equal to the amount reclaimed on all their donations in the current tax year.
Can I Change my Gift Aid status?
We will continue to claim Gift Aid on all future donations until you tell us to stop. The only way to do this is to contact us on 0300 008 8000 or email@example.com
You should not claim Gift Aid when:
-You are making a donation on behalf of someone else or a group of people. For example, if a friend gives you £10 for a fundraising event which you donate to us using your own details. Even if your friend is a UK taxpayer, the donation is not eligible because HMRC needs to know the details of the person actually contributing the funds.
– You are making a donation on behalf of a company. You can only make Gift Aid declarations on your own taxpayer status when spending your own money. However, a company can claim Corporation Tax relief on the donation when donating directly to the charity.
-You are making a donation in return for tickets (raffles, events and auctions) or goods and services (including ‘experience’ days). This is because they are not ‘freewill’ gifts – you are getting something in return for your donation. If we decide a donation has been incorrectly marked as eligible for Gift Aid, we can’t submit it.
Benefits to Higher Rate Taxpayers
If you pay tax at the higher rate, you can reclaim tax relief on your gross donation at 20% (i.e. the difference between the higher rate of tax at 40% and the basic rate at 20%). You will need to do this on your Tax Return.
What if I’m not a UK Taxpayer
The Gift Aid scheme is unique to the UK. If you are not a UK taxpayer, you can still make a donation to Hope for Justice, but your donation will not be eligible for Gift Aid.
What if I don’t live in the UK?
A person living overseas can still claim Gift Aid provided that they are a UK taxpayer and can satisfy the Gift Aid declaration in the donation process