Gift Aid

Gift Aid - A Scheme Provided by HMRC to Help Charities Improve Their Cash Flow

  • When your organisation is registered as a charity you can get more money for all donations from UK taxpayers. For every £1.00 donated you get an extra 25 pence from HMRC, the tax authorities.

  • As an example if total donations in a period equal £2,000.00 you get an extra £500.00 from the HMRC, if Gift Aid is claimed.

How Does Gift Aid Work?

The process is really simple:

All you need to do is fill out a Gift Aid Declaration (GAD) form from the donor. This is a statement from you to the charity confirming that you want to donate through Gift Aid and receive tax back on your donation. Charities don’t pay tax on most types of income, which is why the tax paid on financial gifts can be claimed back.

Your donations will not qualify for Gift Aid if they’re more than four times what you’ve paid in tax that tax year.

If you stop paying enough tax at any point, you must tell the charity you’re donating to.

Are You a Charity?

Key facts about claiming back Gift Aid on a donation:

  • You must be registered as a charity with the Charity Commission.
  • The individual must fill out a Gift Aid declaration form.
  • You can claim online and get payment within 5 weeks

If You Are An Individual - Is My Donation Eligible for Gift Aid?

For a charity to claim Gift Aid on your donation, you must have paid UK Income or Capital Gains Tax that financial year. The tax you pay must be equivalent to the amount of Gift Aid the charity will reclaim on your donation that tax year (and will be claimed by other charities and CASCs). VAT and Council Tax don’t meet these criteria.

From April 2016 the income tax personal allowance has increased to £11,000 for individuals born after 5 April 1948. If your income is below £11,000, you won’t be able to claim Gift Aid on eligible donations.

It’s worth noting that you can’t claim Gift Aid on donations on behalf of someone else or a company.

More about claiming Gift Aid can be found here and you can download a HMRC poster on Gift Aid here

Further information is available from the following sources below: 

A simple to understand HMRC Gift Aid Info-graphic that might be useful.  

Keep up to date and  explore HMRC charity news and updates 

Check out: Gift Aid: The basics and the   Gift Aid Toolkit: introduction.  

Gift Aid guidance and resources including information on the Small Donations Scheme: Charities Online: Making your Gift Aid repayments quicker and easier and Gift Aid Small Donations Scheme



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