Gift Aid is a tax relief allowing UK charities to reclaim an extra 25% in tax on every eligible donation made by a UK taxpayer.
As a UK taxpayer you will pay tax on your earnings, savings, or pensions. If you donate to a charity, this donation will come from money that you have already paid tax on. Our Charity is then able to reclaim the tax back from the Government. It is important to note that this additional money goes to the Charity from the government, so it doesn’t come out of your pocket.
By opting for gift aid, it allows a little extra to go to your chosen Charity, it may not seem like a lot but even the smallest amounts can make the most difference.
To be eligible you must:
- Be a UK taxpayer
- The tax you pay in the financial year is at least equal to your donations to charity.
If you are donating through the platform Just Giving, opting in for gift aid is very simple. During the donation you will be asked to confirm if you are a UK taxpayer. If you select ‘yes’ all you need to do is opt in for gift aid.
It is important to note that you are unable to give gift aid if you are not a UK taxpayer. Gift aid can only be reclaimed on donations made by individuals who pay UK income or capital gains tax at a rate at least equal to the reclaimed on their donations in the current tax year.
When should gift aid not be claimed?
- For a purchase/exchange of services donation (for example, tickets to an event, raffle or tombola. Additionally, if a service has been provided in exchange for a donation).
- When making a donation on behalf or someone else or a group of people.
- When making a donation on behalf of a company.
If you are unsure or would like further information, please check www.gov.uk for advice about Gift Aid prior to uploading your donation.