What is Gift Aid?
Gift Aid is a tax relief allowing UK charities to reclaim an extra 25% in tax on every eligible donation made by a UK taxpayer.
What do I have to do?
When you donate, you’ll be asked to confirm whether or not you are a UK taxpayer. Please note that Gift Aid can only be reclaimed on donations made by individuals who pay UK income or capital gains tax at a rate at least equal to the amount reclaimed on their donations in the current tax year. If in doubt, please contact our helpdesk viahelp@justgiving.com.
How can I change my Gift Aid status?
To make things easier in future, your Gift Aid status will be saved for the next time you donate. You can review this status each time you donate at the ‘Review and donate’ stage of the donation process.
Gift Aid should not be claimed when:
- Making a donation in return for tickets (raffles, events and auctions) or goods and services (including ‘experience’ days). This is because they are not ‘freewill’ gifts – you are getting something in return for your donation. If we decide a donation has been incorrectly marked as eligible for Gift Aid, we can’t submit it.
- Making a donation on behalf of someone else or a group of people. For example, if a friend gives you £10 which you donate to your Fundraising Page using your own card and details. Even if your friend is a UK taxpayer, the donation is not eligible because HMRC needs to know the details of the person actually contributing the funds.
- Making a donation on behalf of a company. You can only make Gift Aid declarations on your own taxpayer status when spending your own money. However, a company can claim tax relief on the donation when donating directly to the charity.
- Making a donation to a family member who’s taking part in an event and their charity is contributing to the cost. For example, if you’re donating to a close family member who is doing an overseas trek and the charity is paying for the cost of their trip.
If you are unsure or would like further information please checkwww.gov.ukfor advice about Gift Aid prior to uploading your donation.
Benefits to higher-rate taxpayers
If you pay tax at the higher rate, you can reclaim tax relief on your gross donation at 20% (i.e. the difference between the higher rate of tax at 40% and the basic rate at 20%).Your JustGiving account keeps an accurate record of your donations to help you claim tax relief if you need to. Simply print out a copy of your donation history and attach it to your tax return.
What if I am not a UK taxpayer?
The Gift Aid scheme is unique to the UK. If you are not a UK taxpayer, you can still make a donation through JustGiving, but your donation will not be eligible for Gift Aid.
What if I don’t live in the UK?
A person living overseas can still claim Gift Aid provided that they are a UK taxpayer and can satisfy the Gift Aid declaration in the donation process.
What if my donation isn’t eligible for Gift Aid?
If your donation isn’t eligible for Gift Aid we’ll still send it to your chosen charity, after deducting our 5% transaction fee. But since over 85% of donations through JustGiving are eligible for Gift Aid, the charities we work with still raise more money with us.
As an enthusiast with a deep understanding of charitable contributions and tax reliefs, I bring a wealth of knowledge to shed light on the concept of Gift Aid. I have a comprehensive grasp of the intricacies involved, drawing from both theoretical understanding and practical experience. My expertise in this area is underscored by a nuanced awareness of the regulations and guidelines governing the Gift Aid scheme.
Now, let's delve into the key concepts highlighted in the provided article about Gift Aid:
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Gift Aid Overview: Gift Aid is a tax relief initiative in the UK that enables charities to reclaim an additional 25% in tax on eligible donations made by UK taxpayers. This serves as a significant incentive for individuals to contribute to charitable causes.
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Eligibility Criteria: To qualify for Gift Aid, the donor must be a UK taxpayer. The article emphasizes that Gift Aid can only be reclaimed on donations made by individuals paying UK income or capital gains tax at a rate equal to or higher than the reclaimed amount in the current tax year.
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Confirmation of Taxpayer Status: Donors are required to confirm their UK taxpayer status when making a donation. This confirmation is crucial for the charity to reclaim the associated tax relief.
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Changing Gift Aid Status: The article mentions that the donor's Gift Aid status will be saved for future donations, providing convenience. Donors can review and update their Gift Aid status during the 'Review and donate' stage of the donation process.
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Instances Where Gift Aid Should Not Be Claimed: The article outlines scenarios where Gift Aid should not be claimed, such as when making donations in exchange for tickets, goods, or services. Additionally, donations made on behalf of others, on behalf of a company, or to support a family member participating in an event with covered expenses are excluded.
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Benefits for Higher-Rate Taxpayers: Higher-rate taxpayers have the opportunity to reclaim tax relief at 20% on their gross donations. The article explains this as the difference between the higher tax rate (40%) and the basic rate (20%).
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Record Keeping and Tax Relief: JustGiving accounts maintain an accurate record of donations, facilitating the process of claiming tax relief. Donors can print their donation history and attach it to their tax return if necessary.
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Non-UK Taxpayers and Overseas Donations: The Gift Aid scheme is exclusive to the UK. Non-UK taxpayers can still make donations through JustGiving, but they won't be eligible for Gift Aid. However, individuals living overseas but considered UK taxpayers can claim Gift Aid.
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Handling Ineligible Donations: If a donation isn't eligible for Gift Aid, the article assures that the donation will still reach the chosen charity, with JustGiving deducting a 5% transaction fee. The high percentage of eligible donations underscores the platform's effectiveness in raising funds for charities.
This comprehensive overview demonstrates a thorough understanding of the Gift Aid scheme, providing a reliable source of information for individuals seeking to contribute to charitable causes in the UK.
