Gift Aid

Under UK tax law charities can increase a donation’s value through a UK Government approved plan called ‘Gift Aid’ meaning that a UK registered charity can recover the basic rate tax that a UK tax payer has paid on his/her donation.  This doesn’t cost the donor anything but, at current tax rates, it increases the value of the donation by 25% in reclaimed Gift Aid tax.

The UK Fund for Charities administers a Gift Aid reclaim service so that once a donor has made a donation, provided name and address details and “ticked  the Gift Aid box” the UKFC is able to make the claim to HMRC.  Once the reclaimed tax has been received by the UKFC it is added to the original gift.  Follow the Donation Form link to see how your donors can make their Gift Aided donations.  All UK donors are very familiar with the concept of “Ticking the Gift Aid Box”.

UK Government Information about Gift Aid
This is the link to the Inland Revenue’s website explaining Gift Aid.  It is designed for a charity but is useful for a donor http://www.hmrc.gov.uk/charities/gift_aid/

Giving Through the Self Assessment Return

In addition Gift Aid UK donors who complete annual Self-Assessment Tax Returns or are higher rate tax payers may be eligible for a personal tax repayment and are able to nominate a charity of their choice to receive that repayment as a donation instead.

• The donation will be paid directly into the charity’s bank account
• The SA Tax Return form includes a Gift Aid declaration as Gift Aid is applicable to the donation
• The Gift Aid will be paid without the charity having to make a repayment claim

We suggest that donors notify the UKFC or their recommended charity if they have made a donation in this way. The donor must enter the identification code of the UKFC on their SA tax return.  The Identification Code for the UKFC is: