Blog

Monday 13th June 2016

Gift Aid

Gift Aid is an income tax relief that benefits charities and community amateur sports clubs
More for charity - If you donate money to either type of organisation, they can claim an extra 25p from the government for every £1 you give.
Less tax for you - For higher or additional rate tax payers, you can then also claim a further 25% of your donation from HMRC. For example, if you donate £100, the charity claims an additional £25 and your tax bill is reduced by £25.
You can also claim tax relief on donations you make in the current tax year. For example, if you make a donation in June 2016 (tax year 2016/17), you can claim gift aid on your 2015/16 tax bill - so it may be worth waiting until later in the year to file your SA return if you make significant donations.
Most charities will ask you to complete a form - all they need is your name and address.
You must have paid tax (Income or Capital Gains) of at least 4 times the amount of your donation for gift aid to be claimed.