The Benefits of Gift Aid
Gift Aid gives you an extra 25p for every £1 you donate.
Gift Aid is a UK tax incentive that enables tax-effective giving by individuals to charities in the United Kingdom. Any cash donations that the taxpayer makes to the Charity after making a declaration, are treated as being made after deduction of income tax at the basic rate (20% in 2020), and the Charity can reclaim the basic rate income tax paid on the gift from HRMC. For a basic-rate taxpayer, this adds approximately 25% to the value of any gift made under Gift Aid.
How does Gift Aid work?
The process is really simple; all you need to do is fill out a Gift Aid Declaration form. This is a statement from you to the charity confirming that you want to donate through Gift Aid and receive tax back on your donation.
Am I eligible for Gift Aid?
For a charity to claim Gift Aid on your donation you must first have paid UK Income or Capital Gains Tax that financial year.
The tax you pay must be equivalent to the amount of Gift Aid the charity will reclaim on your donation that tax year, (and will be claimed by other Charities). VAT and Council Tax do not meet these criteria.