2. Gift Aid

Donating through Gift Aid means charities and community amateur sports clubs (CASCs) can claim an extra 25p for every £1 you give. It won’t cost you any extra.

Charities can claim Gift Aid on most donations, but some payments don’t qualify.

What you need to do

You need to make a Gift Aid declaration for the charity to claim. You usually do this by filling in a form - contact the charity if you haven’t got one.

You must give a declaration to each charity you want to donate to through Gift Aid.

You can include all donations from the last 4 years. Tell the charity about any tax years where you didn’t pay enough tax.

Paying enough tax to qualify for Gift Aid

Your donations will qualify as long as they’re not more than 4 times what you have paid in tax in that tax year (6 April to 5 April).

The tax could have been paid on income or capital gains.

You must tell the charities you support if you stop paying enough tax.

Higher rate taxpayers

If you pay tax at a rate of 40% or above, you can claim the difference between the higher and basic rate on your donation. Do this:

  • through your Self Assessment tax return
  • by asking HM Revenue and Customs (HMRC) to amend your tax code

Example You donate £100 to charity - they claim Gift Aid to make your donation £125. You pay 40% tax so you can personally claim back £25.00 (£125 x 20%).

With Payroll Giving, you don’t pay the difference between the higher and basic rate of tax on your donation.