What is Gift Aid?
Gift Aid is one of the simplest and most effective ways of giving to charity. It is a scheme introduced by HM Revenue & Customs, which allows us to reclaim the basic rate of tax you pay as a UK taxpayer. Memory Giving will recover the gift aid automatically for all donations to charities registered with us.
When can it be claimed?
The Gift Aid scheme is for gifts made by UK tax payers. Remember that what you pay in income/capital gains tax, must at least equal the amount of tax that all the charities and Amateur Sports Clubs you give to will reclaim on your gift aid donations in the tax year in which they are received. A declaration is required by the donor to this effect when donating.
The Declaration
As part of the donation process to enable us to claim the Gift Aid, we will require your name, address and confirmation from you that you have paid enough tax and your donation qualifies.
How much is it?
Gift Aid is currently the equivalent of a 25% increase to the donation minus fees (for qualifying UK tax payers only).
What Tax?
Not only income tax from employment but also from savings interest, tax on pensions, tax on investments and even capital gains. Please note that other taxes such as Council Tax and VAT do not count for this purpose. Also only UK tax counts, so if you only pay tax outside the UK you won’t be able to use Gift Aid.
How to check if you’ve paid enough tax
Divide the donations made in a year by four; your total tax payment in the year needs to be the same or less.(e.g. If you donate £100 through the year, you must have paid £25 tax or more.)
For more information and details on how you may claim back higher rate tax if you are a higher rate tax payer, please visit www.hmrc.gov.uk