What is Gift Aid?
Gift Aid is a scheme that allows charities to increase the value of donations, by reclaiming the basic rate income tax that has already been paid on that money.
The tax is reclaimed by the charity directly from HMRC. The basic rate of income tax is currently 20%. Therefore every £0.80 donated received is equivalent to £1, because the donation is treated as £1 before deduction of 20% tax. For basic rate tax payers this means that for every £1 you donate to charity under the Gift Aid scheme, the charity receives approximately £1.25. It is important to understand the benefits of the Gift Aid scheme to make sure that charities can receive the maximum donation possible. It also ensures that any person making a charitable donation through the Gift Aid scheme is using any tax relief available.
What kind of Donations Apply to Gift Aid?
Gift Aid only applies to cash donations, although if you operate a charity you can often claim tax back on the value of donated goods.
A Gift Aid claim for tax relief only applies to individuals, it cannot be claimed on donations made by companies, although in these cases Corporation Tax relief may apply.
A Gift Aid claim is allowable for any EU, UK, Icelandic or Norwegian charity if they are registered with HMRC.
Gift Aid Claim Tax Refund!
If you pay higher rate income tax on your UK earnings you can also claim back the tax you have paid on any part of these higher rate earnings that you donate to charity.
If you make a charitable donation under the Gift Aid scheme you are eligible for tax relief on any tax higher than the basic rate. This means that if you pay 40% tax you can receive 20% tax relief on charitable donations, up to the amount on which you are paying higher rate tax. In practice this means that for every £1 you pay, the charity receives £1.25 and you can reclaim £0.25. Similarly, if you pay 50% tax you can currently receive 30% tax relief on charitable donations.
There are slightly different rates for donations made before April 2008. However, you cannot usually backdate a Gift Aid claim for more than two years.
How Do I make a Gift Aid Claim?
To receive the benefits of the Gift Aid scheme you need to make a Gift Aid claim by completing a simple declaration for every different charity that you donate to each tax year.
If you are a higher rate taxpayer and complete a Self Assessment Tax Return, you will also need to declare all your charitable donations on your Self Assessment tax return.
The charity you have donated too can provide you with a Gift Aid declaration form. There is no existing official Gift Aid form and therefore the charity you have donated too is the best contact to obtain the Gift Aid form.
It is possible to provide an Oral declaration as long as specific protocol is followed by the Charity.
For further Tax Refund information, please follow the links below:
Tax Refunds by Employment
Healthcare Worker Tax Rebates includes:
Can I Claim Tax Relief for Professional Fees?
Can I Claim Tax Relief for the Cost of Shoes and Tights?
What about Tax Relief for Laundry Costs?
Can I claim Tax Relief for Business Mileage?
Can I claim Tax Relief for Specialist Equipment?Nurse Tax Refunds includes:
Nurse Tax relief for the cost of laundering of Uniform
Nurse Tax relief for the cost of shoes and tights
Nurse Tax relief for professional fees – RCN Tax, Unison Tax, NMC Tax
Nurse Tax Relief for use of own car or public transport for work purposesTeacher Tax Refunds includes:
Teacher Tax Relief for professional fees – NUT tax relief, NASUWT tax relief.
Teacher Tax Relief Books and Journals
Teacher Tax Relief for specialist clothing
Teacher Tax Relief for Equipment Purchased for Work Use
Teacher Tax Relief for qualifying travelling expenses- Tax Relief for Washing of Uniform includes:
Am I Eligible for Uniform Tax Relief for Washing Uniform?
What am I actually claiming back?
How much will I get from a Uniform Tax Relief claim?
Can I claim for any other Tax Relief? Mechanic Tax Claim Refunds includes:
Tool Tax relief– What are Flat Rate Expenses?
Tool Tax relief– What are Capital Allowances?
What About Tax Relief for Specialist Clothing?Tax Claim Refunds for Trades / Construction Industry Workers under PAYE includes:
Can I claim Tax Relief for Business Mileage?
Can I Claim Tax Relief for other using Public Transport?
What about Accommodation and Subsistence?
Tool Tax Refund: What are Flat Rate Expenses
Tool Tax Refund – What are Capital Allowances?
Can I Claim Tax Relief for Specialist Clothing?Doctor Tax Refunds includes:
Doctors Tax relief for professional fees
Doctors tax relief for Professional Indemnity Insurance
Doctor Tax Relief for business use of car
Tools and equipment purchased for work usePolice Tax Refunds includes:
Police Officers Tax Relief for the Cost Of Laundering Uniform
Police Tax Relief for the cost of Police Federation Fees
Police Tax Relief for Business use of own car or public transport for work purposesStudent Tax Refund includes:
If I am a student can I claim a Student Tax Refund?
What About if I work during the Summer?
Tax Refunds for Expenses
Business Mileage Tax Refunds includes:
What is Business Mileage?
What counts as a Temporary Workplace?
What are the Business Mileage Rate Allowances?
Travel Expenses – Can I claim any further Tax Relief?Travel Expenses Tax Refunds includes:
When can I claim tax relief (business mileage) for travel to a temporary workplace?
When can I claim tax relief (business mileage) for travelling to work in different locations?
If I use public transport can I claim tax relief for a travel card?
When can I claim tax relief for Subsistence and accommodation?
Do I need to use the cheapest transport or accommodation to claim tax relief?
Travel Expenses – How much can I claim?Subsistence Expenses Tax Refunds includes:
What Is Subsistence?
What Is A Temporary Workplace?
Do I Need Records?
My Employer Reimburses Me Can I Still Claim?Tools for Work Use Tax Refunds includes:
Tools Tax – When am I Eligible for Tax Relief on Tools, Equipment and Specialist Clothing?
Tools Tax – What are Flat Rate Expenses?
Tax relief for tools – What are Capital Allowances?
What About Tax Relief for Specialist Clothing?
Tax Refunds for Tax Code
Income Tax Code Refund includes:
How do I know if my tax code is wrong?
How do I reclaim a Tax Code Tax Refund?
Tax Refunds for Left The UK
Left or Leaving the UK Tax Claim Refunds includes:
When am I entitled to leaving the UK tax back?
How much UK tax back can I receive?
Do I need to complete Tax Claim Forms when leaving the UK?
Do I need to complete a Self Assessment Tax Return?UK Non Resident Tax Refunds includes:
What is Non-Resident Status?
What is a Double Taxation Agreement?
What sort of UK Income is eligible for tax relief?
How do I apply for UK Non-Resident Tax Relief?
Do I need to Complete a Self Assessment Form?UK Non Resident Landlords Tax Refunds includes:
What is the UK Non Resident Landlord Scheme?
What if the property is administered by Letting Agents?
Can I claim Tax Relief for Property Expenses?
How does the Non Resident Landlord Scheme affect my Tax payments?
Do I need to complete a Self Assessment Tax Return?
How does other income affect my tax allowance?Seafarers Tax Refund includes:
What is Seafarers’ Earnings Deduction?
Who can claim SED?
What information do I need?
How do I claim?
CIS Tax Refunds
CIS Tax Refunds includes:
What is a CIS Tax Refund?
How do I get a CIS Tax Refund?
What is the average CIS Tax Refund?
Should I fill in my Tax Return myself or use an Accountant?
CIS Tax Refunds – important to know
Other Tax Refunds
Car Tax Refund includes:
Can I get a refund on my Car Tax/Vehicle Tax?Council Tax Rebate includes:
Can I claim a Council Tax rebate?NI Refund includes:
For the Employed
Missing National Insurance Years
National Insurance Refund if you have left the UK
Class 1 National Insurance and the State Pension Scheme
National Insurance Refund for the Self EmployedVAT Refund includes:
VAT Refund for Individuals
VAT Refund if you live in the EU
VAT Refund if you live outside the EU
VAT Refund if you work or study in the UK but live outside the EU
VAT Refund for Business
