The Government allows charities to claim back tax on donations. This tax relief is called ‘Gift Aid’.
Gift Aid is great because it means charities get extra money added to their donations at no extra cost to the donor. For every £1 donated, the charity currently receives £1.25 when you add Gift Aid.
Can Gift Aid be reclaimed on all donations?
There are some exceptions where Gift Aid can’t be reclaimed:
If you’re not a UK taxpayer
Charities can claim back the basic rate of tax on donations because the donor has already paid the tax on their earnings. So if you don’t pay UK income or capital gains tax it can’t be reclaimed on your donation.
If you’re donating someone else’s money
Gift Aid can’t be reclaimed if you’re donating someone else’s money – for example, if you’ve sold raffle tickets or you’re making a donation on behalf of a company.
If you’re sponsoring a relative who has received a contribution towards their event costs
Gift Aid can’t be reclaimed if you’re sponsoring a relative who has received a contribution towards their event from their charity (for example, if your brother is doing an event overseas and the charity has paid for his air ticket).
What do I need to do to reclaim Gift Aid?
I’m making a donation to charity
Every time you make a donation to Cyril Flint through Just Giving or Paypal Giving Fund they will ask if you’re eligible for Gift Aid – simply have a read through the information and tick the relevant box to let them know.
That’s it – if you’re eligible they reclaim the Gift Aid from HMRC on our behalf and pass it onto us in full.
Donations not made via Just Giving or Paypal
A donor has to make a declaration giving the charity permission to claim the tax back on their donations.
This declaration can be made orally or in writing and can be backdated for donations made in the past 4 years and also any future donations. Please contact us so we send you a Gift Aid declaration form to complete.
What about higher rate tax payers?
Charities can only reclaim the basic rate of tax as Gift Aid. If you’re a higher rate tax payer, you can reclaim an extra 20% of your donation (the difference between basic and higher rate tax) when you submit your tax return to HMRC.
Simply keep any donation confirmation emails you are sent, or for cash back donations, screen print the cash back history page within your account, and attach these to your tax return if HMRC ask for supporting evidence.