Gift Aid Scheme

Gifts of cash to charity can qualify for Gift Aid treatment. For a cash gift to qualify, you will need to declare to the charity in writing that you want your gifts (including certain gifts in the past) to be within Gift Aid. To qualify the gift can be of any size.

Payments to charities under the Gift Aid scheme are treated as having been made after deduction of income tax at the basic rate. This means that charities that receive your Gift Aid payments can reclaim that income tax from the Inland Revenue (“HMRC”) but only if you have paid enough income tax or capital gains tax (at whatever rate) to cover the tax that the charities reclaim. If you are a higher rate taxpayer then you can include a claim for additional tax relief in your annual income tax return – in effect, HMRC gross-up the amount of your gifts.

The extra money received from gift aided donations has made a huge difference to the many worthwhile causes we support. For example for every extra £400 raised this helps to educate 1 child for 1 year. So next time you make a donation, provided you are a taxpayer in the UK, please consider donating the funds through Gift Aid. As a donor, your only requirement is to give your full home address and to agree to gift aid the donation.

  • So, for the charity to receive £1000 you make a Gift Aid donation of £800. This amount is £1000 less tax at the basic rate of 20%. The charity claims back tax on your donation at the basic rate from HMRC. That is £200.
  • As long as you have paid at least £200 in tax during the financial year in which you make the donation, HMRC will repay the tax to the charity.
  • If you are a higher-rate taxpayer, you are entitled to claim the difference between the basic rate (currently 20%) and the higher rate (currently 40%). You do this by entering the amount given on your self-assessment tax return and the system will work out the relief owed.
  • In our example, you claim back tax on the gross value of the donation. That is currently 20% or £200. Another way of looking at it is that the tax relief to you is 25% (£200 ÷ £800) of your original donation.
  • So the actual cost to you of your donation of £1000 is £800 (original donation) minus £200 (tax reclaimed), equals £600.

If you wish to make a donation to any of our worthwhile causes and you are a UK tax-payer, you may consider making your donation by Gift Aid. By doing this, BEHT can claim back the income tax you will have already paid on the donation at no extra cost to yourself. BEHT will supply you with a simple form. All you have to do is fill in your name, address and signature and then return it to BEHT.

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