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What is Gift Aid?
Gift Aid is a scheme which allows charities to claim extra money from HMRC.
A charity can claim an extra 25p for every £1 you donate if you pay at least the basic rate of tax and make the donation from your own funds. That means Gift Aid can increase the value of your donations by 25%, so the causes you care about receive more benefit.
Gift Aid means millions of extra pounds go to the charity sector. Each time an eligible tax payer donates and forgets to tick the Gift Aid box, the charity misses out.
Are my donations eligible for Gift Aid?
Yes, when you make a monetary donation from your own funds and have paid UK Income and / or Capital Gains Tax during that tax year.
The amount of tax you pay needs to be at least equal to the value of Gift Aid the charity will claim on your donation(s). For example, if you give £1,000 to a charity over the year you must be paying at least £250 per year income or capital gains tax for the donation to be eligible.
If circumstances change and you no longer pay enough tax, it’s important to tell all the charities you support. If you don’t tell them and they continue claiming Gift Aid, you’ll need to pay any difference back to HMRC.