Gift Aid

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Gift Aid Summary

Gift Aid offers a simple way to increase the value of a gift of money from a UK taxpayer to a charity by allowing them to reclaim basic rate tax already paid on the donation from HM Revenue & Customs (HMRC).

How Gift Aid works

Gift Aid works by allowing charities to take a donation, (from money that the donor has already paid tax on), and then reclaim tax on its 'gross' equivalent, (its value before tax was deducted), at the basic rate. This is 20 per cent from the 6th April 2008.

In practice this means that for every pound donated to St Hugh’s using Gift Aid, we can claim an extra 25p from HMRC making the pound worth £1.25.

Gift Aid can apply to one-off donations, (Mass Stipends, Christmas and Easter Gifts etc), or to a series of regular donations, (weekly offertory).

Gift Aid declarations

In order for a donation to qualify under Gift Aid the donor needs to make a declaration saying that they would like to donate through the Gift Aid scheme and confirming that they have paid enough tax to cover the charity’s claim. The charity can ask for a written declaration or they may accept oral declarations.

A Gift Aid declaration can apply to:

  • a single donation
  • all future donations to the same charity
  • donations made to the charity in the previous six years or
  • a combination of these options.
The charity will ask which type of declaration the donor wants to make.

Who can donate through Gift Aid?

A donor can use Gift Aid if the amount of tax they have paid in the tax year of the donation is sufficient to cover the amount of tax the charity will reclaim against the donation. The tax paid by the donor may be Income Tax, Capital Gains Tax or tax credits on UK company dividends. Tax years start on 6 April and run until 5 April the following year.

Higher rate taxpayers

A higher rate taxpayer who makes donations through Gift Aid can claim back the difference between the higher rate of tax at 40 per cent and the basic rate of tax at 20 per cent on the total value to the charity of their donation (the 'gross donation').

The donor may choose to give some or all of this difference to charity.

Donors who complete a Self Assessment tax return will have an option to claim back the higher rate element of the tax relief on any donations made to charity. Donors who do not complete a Self Assessment tax return can call their tax office and have the higher rate relief reflected in their PAYE tax code.

Non taxpayers

If you do not pay tax, you may not use Gift Aid.

Gift Aid in the Parish

Ian Dallas is the Parish’s Gift Aid organiser. If you pay Income Tax and are interested in the scheme, please speak to Ian to make your donations to the Parish worth 20% more.

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