Gift Aid donations: everything you need to know
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Understanding Gift Aid
Which donations qualify for Gift Aid?
- Gift Aid can be applied to all voluntary donations of money, large or small, providing they are made by an individual who pays sufficient UK tax.
- Your declaration will cover all cash, cheque, postal order, Direct Debit, standing order and credit or debit card donations.
- It will not be applied to donations received from tax efficient payment schemes. These include Charities Aid Foundation (CAF) payments or payroll gifts, as tax relief has already been claimed.
Do I qualify for Gift Aid?
To be eligible for Gift Aid, you must:
- be a UK taxpayer
- have paid, or expect to pay, sufficient Income Tax and/or Capital Gains Tax in the tax year your donation is made to cover all Gift Aid claims on your charitable contributions
- complete a valid Gift Aid declaration
- if making an ongoing (enduring) declaration, ensure you have paid enough tax to cover donations made within the previous four tax years.
We currently reclaim tax at the basic rate of 20% on the gross value of your donation (equivalent to 25% of the amount you give).
Please inform us if your tax circumstances change, as you may be responsible for any difference if insufficient tax has been paid.
Further guidance is available on the Gift Aid section of the Gift Aid page on Gov.uk.
I’m a pensioner. Do my donations qualify?
Income received solely from a State Pension will not usually qualify, as you generally need total earnings above the personal allowance to pay Income Tax.
If this is your only source of income, you should check with your tax office before making a Gift Aid declaration.
Can I use Gift Aid for items donated to charity shops
Gift Aid can only be claimed on monetary donations. However, when you donate items to our charity shop, we can sell them on your behalf and convert them into cash. You may then choose to donate the proceeds and apply Gift Aid.
Simply ask about Gift Aid when dropping off your items at the shop.
As with all Gift Aid claims, you must be a UK taxpayer and have paid enough Income Tax and/or Capital Gains Tax in the relevant tax year to cover the amount reclaimed.
How to make a Gift Aid declaration
There are three different ways you can make a Gift Aid declaration for donations:
- Tick the Gift Aid box when you donate online.
- Complete our Gift Aid declaration form online.
- Or, print and post it to us at Northolt Drive, Bolton. BL3 6NJ or email it to accounts@destituteanimalshelter.org.uk.
Once completed, please remember to let us know of any changes to your tax status, including changes to your name and address, so we can ensure that no further claims are made against your donations.
Managing Gift Aid
What are my responsibilities in the Gift Aid scheme?
You must ensure that you have paid enough tax in each tax year to cover all donations made under Gift Aid. You remain responsible for any Income Tax, Capital Gains Tax, or VAT liabilities that may arise if you sell goods in significant volumes.
You are also solely responsible for handling any claims from buyers seeking compensation for items they have purchased.
We will contact you regarding this agreement by email or post.
You may cancel this agreement at any time.
Does my declaration cover all donations I’ve ever made to you?
We can only reclaim Gift Aid on donations made within the past four years. If your donations date back beyond this period, tax relief will only be applied to those made within the eligible timeframe.
What if I pay a higher rate of tax?
If you pay tax at a higher rate, we can only reclaim the basic rate of tax on your donation.
You may be able to claim back the difference between this amount and the rate of tax you pay through your Self Assessment tax return.
What if I stop paying tax? Can I withdraw the declaration?
You can cancel the declaration at any time by emailing your full name and address, including your postcode, to accounts@destituteanimalshelter.org.uk or by calling 01204 526486. Please do this as soon as possible.
