Gift Aid – your questions answered
How does Gift Aid work?
As long as you are a UK taxpayer, Gift Aid enables you to boost the value of your donations by 25p for every pound you give. For example, if you donate £10 to Treloar's, we will be able to claim an extra £2.50 from HM Revenue and Customs. It might not sound a lot, but every penny really does count!
If you are a higher rate tax payer, Gift Aid still applies at the basic rate of tax (20%) but the difference between the amount claimed back by the charity and the higher rate paid can be claimed back by you, enabling you to reclaim as much as 25p from every £1 donated to charity. If you prefer you can choose to donate this reclaim amount back to charity.
How do I know if I pay enough tax to qualify?
As long as you pay enough tax in the year to match the tax that all the charities you donate to will claim back, your donation will qualify. For example, if you donate £100 in the current tax year, Treloar's could claim back £25.00 from HMRC. To qualify for Gift Aid you must have paid £25.00 in tax over the course of the year.
If I am a higher rate tax payer, how do I reclaim the tax on my donation ?
If you are a higher rate taxpayer you can reclaim the money on your self assessment tax return (form SA100). If you do not complete a self-assessment form, you can contact your local tax office and reclaim the donation using the P810 form.
If I am a higher rate tax payer, how can I donate this reclaim amount to Treloar's?
If you decide to donate your reclaim amount to Treloar's you can do this on your self assessment form using Treloar's unique HMRC reference number LAA65DG. For further information on higher rate tax payers and Gift Aid go to www.hmrc.gov.uk/charities/faq.htm.
See what a difference this could make to a donation to Treloar's: If a higher rate taxpayer donates £100 to Treloar's, a further £25.00 can be reclaimed by us from HMRC. The donor can also receive a £25 rebate on this donation, which can also be given directly to our cause. HMRC will further Gift Aid this, increasing the value of the original £100 donation to £157.45!
I pay capital gains tax - can I still Gift Aid my donations?
Yes. The rules for capital gains tax, which are applied to unearned income such as interest from savings, are the same as they are for Income Tax.
What if I stop paying tax?
Just let us know and we will stop reclaiming the tax on your donations straight away.
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