Gift Aid Explained

If you’re a UK taxpayer, you can make your donation worth 25% more, at no extra cost to you with Gift Aid. So for every £1 you donate, we receive an extra 25p now and in the future.

Gift Aid – The Facts

The Gift Aid scheme is for gifts of money by individuals who pay UK tax. All charities have to be able to provide, when requested, a valid declaration through which Gift Aid has been claimed, so it’s incredibly important that any forms sent back to us are accurate and complete

  • The Gift Aid rules require the completion of a postal Gift Aid Declaration Form or complete an Online Gift Aid Declaration.
  • Gift Aid can be claimed on individual and sponsorship donations that are made to The Big Issue Foundation
  • Gift Aid applies only to ‘gifts’. That means we can’t use Gift Aid to boost fundraising totals on activities where people have been charged an entry fee or have entered a competition. This also extends to activities where the donor can’t be traced (such as giving to collections). A statement that the person making the declaration must have paid an amount of income tax (or capital gains tax) at least equal to the amount of tax reclaimed by all charities and Community Amateur Sports Clubs on all their donations in the tax year (6th April one year to 5th April the next). Currently 25p for every £1 donated. Other taxes such as VAT and Council Tax do not qualify.

You can find out all the information you need to know by visiting the HMRC website.

How to check if you’ve paid enough tax

To work out if you’ve paid enough tax to cover your donations, divide the donation value by four. For example, if you give £100 in a particular tax year you will need to have paid £25 tax over that period. (£100/4 = £25). (Note that this calculation is based on the basic rate tax of 20 per cent). If you don’t think you’ve paid enough tax this year, you may be able to carry back your donation to the previous tax year.

Higher rate tax payers and Gift Aid

If you pay higher rate tax, you can claim the difference between the higher rate of tax 40 and/or 50 per cent and the basic rate of tax 20 per cent on the total ‘gross’ value of your donation. If you want to receive the additional tax relief you must include all your Gift Aid donations on your Self Assessment tax return or ask HM Revenue and Customs to adjust your tax code. The Self Assessment Donate Scheme ceased from April 2012.  This means that donors can no longer send a tax refund to a charity straight from their tax return. Donors can still donate their tax refund to any charity themselves and claim Gift Aid if the qualifying conditions have been met.

Update your personal details

Have you changed your name, moved house or no longer qualify for Gift Aid due to a change in tax circumstance? Please let us know by completing our online gift aid form so we can continue to claim Gift Aid accurately and only where applicable.

Call us on 0207 526 3458