What is Gift Aid?
Gift Aid is a government tax scheme that helps charities to raise more money. This is done by asking supporters who are UK tax payers and have paid enough tax to Gift Aid their own donations by signing a valid Gift Aid Declaration.
HATW can reclaim tax on a donation made by a UK taxpayer, which means your donations will be worth 25% more to us at no extra cost to you.
So if you give £4, we can get an additional £1. A £20 gift will be worth £25 – with the extra £5 coming from the government. It also counts for donations you’ve made in the past, up to four years ago.
Is your donation eligible for Gift Aid?
Whether you pay online, by phone or post please make sure that you send all your filled-out donation forms to HATW.
If we don’t receive your forms, HATW won’t be able to claim Gift Aid.
Are there any hidden charges?
No. Gift Aid is taken from tax you’ve already paid, so there’s no charge to you. It doesn’t affect your tax status either.
Are there any donations not eligible for Gift Aid?
Under UK law, certain donations are not eligible for Gift Aid. If your donation falls into any of the following categories, Gift Aid shouldn’t be claimed:
- Donations made by anyone who is not a UK taxpayer.*
- Donations made on behalf of someone else or a group of people – For example, you collect money from your friends and family and then made a bulk donation. Even if they are UK taxpayers, the donation is not eligible. HMRC needs a Gift Aid declaration from each of the donors contributing to the collection.
- Donations made in return for something. For example, you are making a donation in return for a ticket to attend an event, most purchases of goods at an auction, a cake sale donation, or buying a raffle ticket.
- Donations made on behalf of a company (however, the company can claim tax relief on the donation when donating directly to the charity).
*NOTE: If you are either not a UK taxpayer, or if you pay less income tax and/or Capital Gains Tax in the current tax year than the amount claimed on all your donations, HMRC may require you to pay the difference.
I am a pensioner, do my donations qualify?
You may still be paying tax on a private pension plan or a savings account, or capital gains tax if you sell either some property or shares. You are still eligible if you have paid enough tax during the year to cover the amount we are reclaiming on your donations.
Do I have to make a declaration for every gift?
No. You just need fill out a Gift Aid declaration and date it – then it will cover donations you have already made to HATW and any donations you make in the future. There is no extra paperwork – we deal with the tax office to reclaim the tax. All we need is your form.
What if I give through Gift Aid to other charities?
That’s great. You can Gift Aid all your donations to different charities – you just have to tick the Gift Aid declaration for each charity you support, and make sure you pay enough tax to cover them.
What if I pay tax at a higher rate? Can HATW claim back the full amount?
Unfortunately not, we can only claim back tax at the basic rate. But you can request a rebate for the difference when you submit your tax returns and you can then opt to donate this to a charity of your choice.
Can I call you if I have any further questions?
If you have any further questions about Gift Aid – or if your circumstances change – please call our office on 07514 787 842 or email [email protected]
Page updated: 1/11/2023