This site uses cookies to improve your browsing experience and analyse use of our website. By clicking ‘I accept’ you agree and consent to our use of cookies. You can find out more about our cookies here. Find out more

Gift Aid

Gift Aid – What to do if your income has dropped

Gift Aid is a government scheme available to charities and community amateur sports clubs that allows them to claim extra money from HMRC off the back of a donation by a UK taxpayer. The claimant will be able to get an extra 25p from each £1 donated as long as the donor has paid the basic rate of tax and the donation is made from their own funds. For those that pay above the basic tax rate, an individual can claim the difference between the rate you pay and the basic rate on your donations.

Gift Aid – What to do if your income has dropped

Gift Aid is a government scheme available to charities and community amateur sports clubs that allows them to claim extra money from HMRC off the back of a donation by a UK taxpayer.

Gift Aid – Be cautious if your income has dropped

The tax that is claimed back by the charity is funded by the tax paid by the donor. This is only applicable where the donor has paid more tax in the year than is claimed back by charities and community amateur sports clubs on donations. Problems can arise if the donor’s income falls, such that they are not classed as a taxpayer or pay less tax than is claimed back on the donation.

Charitable donations by partnerships - is Gift Aid available?

Since 6 April 2016, individual partners have had to make their own Gift Aid declarations when a partnership makes a donation to a charity or CASC. This reflects the correct legal position that each partner has made a donation. Each partner’s Gift Aid declaration must contain their name and full home address and be given to the charity or CASC.

Changes to the Gift Aid Small Donation Scheme

Changes to the Gift Aid Small Donation Scheme legislated in the Small Charitable Donations and Childcare Payments Bill came into effect on 6 April 2017 making it simpler and easier to claim.