Gift Aid Guidance
What is Gift Aid?
Gift Aid allows UK charities to claim back the basic rate tax already paid on donations by the donor. This means you can claim back from the government 25p for every £1 donated, boosting the value of the donation by a quarter.
What you can claim Gift Aid on
You can claim Gift Aid on donations from individuals. The donor must:-
• have paid the same amount or more in Income Tax or Capital Gains Tax in that tax year than the amount donated; and
• make a ‘Gift Aid Declaration’ that confirms that gives you permission to claim it. Copies of example ‘Gift Aid Declarations’ can be downloaded from the following government website:- https://www.gov.uk/claim-gift-aid/gift-aid-declarations.
Gift Aid Small Donations Scheme (GASDS)
You may still be able to claim 25% on cash donations of £20 or less, even if you don’t have a Gift Aid declaration.
You can claim up to £1,250 in a tax year (ie on donations of up to £5,000) and from 6 April 2016, you can claim up to £2,000 in a tax year or £1,250 for earlier years.
To be eligible your charity must have claimed Gift Aid:-
• in the same tax year as you want to claim GASDS; and
• in at least 2 of the last 4 tax years (but without a 2 year gap between the claims) without getting a penalty in the last 2 tax years
Your GASDS claim can’t be more than 10 times your Gift Aid claim. For example, you can claim on £1,000 worth of donations through GASDS if you’ve received £100 of Gift Aid donations in the same tax year.
For a claim under GASDS you need to record the:-
• total cash donations collected;
• date of the collection; and
• date it was paid into a bank account.
You claim under GASDS at the same time and in the same way as your Gift Aid claim.
How to claim
You can claim Gift Aid using your Charities Online Login or you can apply by post using form ChR1, which you can get from the government charities helpline - 0300 123 1073.
When you must claim
Your deadline to claim Gift Aid depends on how your charity is set up.
You need to claim for a donation within 4 years of the end of the financial period you received it in. This is:-
• the tax year (6 April to 5 April) if you’re a trust; or
• your accounting period if your charity is a community amateur sports club (CASC), a Charity Incorporated Organisation (CIO) or a limited company.
You must claim on cash donations under the Gift Aid Small Donations Scheme within 2 years of the end of the tax year that the donations were collected in.
You need to keep records of these donations for a further two years after the Gift Aid and GASDS claims have been made.