If you pay tax, Gift Aid is a scheme by which you can give a sum
of money to charity and the charity can reclaim from the Inland
Revenue basic rate tax on your gift. That increases the value
of the gift you make to the charity.
For example, if you give £10 using Gift Aid in the tax year
2003/04, that gift is worth £12.82 to the charity.
You can make payments by cash, cheque, postal order, direct debit,
standing order, debit or credit card or even in a foreign currency.
Subject to a few rules, you can give any amount, large or small,
regular or one-off, and Crisis can reclaim the tax.
If you are a higher rate taxpayer, you can claim relief on the
difference between the basic rate and higher rate of tax. If you
do not pay tax, you should not use Gift Aid.
How does my gift qualify for Gift Aid?
You must pay at least as much tax as the charities will reclaim on your
gifts in the tax year in which you make them (tax credits on dividend
income will count towards the tax paid). The tax year runs from
6 April in one year to 5 April in the next.
make a declaration to the charity that you want your gift to be
treated as a Gift Aid donation
not receive excessive benefits in return for your gift.
GIFT AID NOTES
- You can cancel your gift declaration at any time by notifying the
charity.
- Please notify the charity if your circumstances change and you
no longer pay any amount of tax, or if you change your name or
address.
- To be eligible to Gift Aid you must pay an amount of income
tax and/or capital gains tax (including tax you may pay on
your savings)
at least equal to the tax that the charity reclaims on your
donations in the tax year (currently 28p for each £1 you
give).
- Unless
you're giving thousands of pounds that's very unlikely!
- Remember to notify us if you no longer pay an amount of income
tax or capital gains tax equal to the tax we reclaim on your
donations.
- If you pay at the higher rate you can claim further tax relief
in your self assessment tax return.
- If you are unsure whether your donations qualify for Gift Aid
tax relief please contact your local tax office for leaflet IR65
Gift
Aid.
Visit the Inland Revenue website to find out more Gift Aid and
tax efficient ways to give to charity. |
