Gift Aid Explained
You can make your donation worth a quarter more with Gift Aid declaration. Gift Aid is a government scheme which allows us to claim tax back from the Inland Revenue. For every £1 donated, we can claim an extra 25p and in addition HMRC will automatically pay us a further 3p for every £1 donated by you!
- You donate £100.00 we get £128.00
- You donate £50.00 we get £64.00
- You donate £10.00 we get £12.80
If you have a salary, savings in a bank and/or building society, investments or a pension you may well be a tax payer and thus be entitled to Gift Aid your donation.
As long as you are a UK tax payer and you pay an amount of income tax and/or capital gains tax at least equal to the tax that we reclaim on your donations in the tax year (i.e. 28p for each £1 you donate) then you can Gift Aid your donation.
If you are sending us a cheque with a donation you simply need to fill out a Gift Aid declaration form, click here.
If you donate via our Just Giving site you simply need to select that you want to Gift Aid your donation.
What is a Gift Aid declaration?
It is simply a statement by an individual taxpayer that they want a charity to get back from the Inland Revenue the tax paid on their donation. This is a great way to add 28* per cent to the value of your gift to us without it costing you a penny more!
* For any donations you make after 6 April 2008 it will be 25 per cent. The Government will pay us an additional 3p on every £1 you give during the transitional relief period.
How does Gift Aid work?
Gift Aid is one of the easiest ways to make your donation tax effective. We as a charity can reclaims the basic rate tax from the Inland Revenue. There is no extra cost to you and the process is simple - all you have to do is make a Gift Aid declaration.
What does the Gift Aid declaration commit me to?
Absolutely nothing! It just ensures that if you choose to donate to us, we can claim an extra 25* per cent back from the Inland Revenue.
*For any gift aided donations, which were made before 6 April 2008, we will be able to claim back 28 per cent.
Gift Aid - do I qualify?
For every £1 you donate to us in a financial year, you must have paid 28p* in income or capital gains tax in the same financial year to qualify for Gift Aid.
*For any donations you make after 6 April 2008 you must have paid 25p in income or capital gains tax in the same financial year to qualify for Gift Aid.
How do I know if I pay UK income or capital gains tax?
You pay these taxes if:
- income tax is taken from your wages or salary before you receive your pay
- you pay tax after filling in a self-assessment form each year
- you have any taxable savings (in a Building Society, for instance), or a pension plan, or investment income
- you have paid any capital gains tax, on the sale of a property or some shares, for instance.
If any of these applies to you, please complete and return your declaration so we can reclaim the tax on your donations. NB Inheritance tax does not count as UK income or capital gains tax.
What if I don't pay UK tax?
Then, unfortunately, you are not able to make a Gift Aid declaration. If you want us to make a note of this on your records, please let us know by contacting us in one of the following ways:
• Email: firstname.lastname@example.org
• Telephone: 01789 867 503
• Write to us at: STARS, Unit 6B, Essex House, Cromwell Business Park, Chipping Norton, OX7 5SR
What if I'm a pensioner?
You may still pay tax on a private pension plan or a savings account, or pay capital gains tax if you sell property or shares. If so, please tick the Gift Aid declaration.
How long does the declaration last for?
To simplify matters for both you and us, the declaration wording normally covers present, future and past donations. We are able to claim on any gifts made since the Gift Aid scheme was revised on 6 April 2000, as long as you are eligible.
Who will have access to this information about me?
Only STARS and the Inland Revenue. We will not share it with anyone else.