What is Gift Aid?
Gift Aid is a scheme that allows charities to reclaim tax on a donation made by a UK taxpayer, which means your donations will be worth 25% more to us at no extra cost to you. If you Gift Aid your donations we can claim back from the government 25p for every £1 you donate to Para Dance UK.
This additional income really does make a big difference, so please don’t forget to Gift Aid donations if you are a UK tax payer.
How to Gift Aid your donations?
If you are a higher-rate tax payer you can also claim additional tax relief. For higher rate tax payers (paying tax at 40%) this works out as 25p for every £1 you donate and for the highest rate tax payers (paying tax at 45%) this works out as 31p for every £1 you donate.
What we need to claim Gift Aid
• The donation must come from a personal bank or building society account
• Unfortunately we can’t claim Gift Aid on donations from company accounts. The donation must be your own money and cannot be the proceeds of a collection.
• For you to be paying income tax or capital gains tax which at least equals the amount we will claim in the appropriate tax year (6 April one year to 5 April the next). This is currently 25p for every £1 you give.
• Using the declaration form, we can claim Gift Aid on all your donations in the last 4 years and all future donations.
• Once you have become a Gift Aid donor, please let us know if you stop paying tax or if you change your name/address so that we can update our records.
If you are donating goods and you are a UK tax payer, we can increase the value of your goods compared with if you donated them to use to sell. Simply contact us for more details
What about higher or additional-rate taxpayers?
Any higher-rate (40%) or additional-rate (45%) taxpayers are able to reclaim the difference between the basic and higher rates (ie, 20% or 25%) on top of this.
For higher-rate taxpayers, on £10 that’s another £2.50 (so £5 in total), and for additional-rate taxpayers, it’s a further £3.12 (so additional-rate taxpayers can give £15.62 from a donation of £10 – 56.2% on top of your original donation).
Higher and additional-rate taxpayers can choose whether to claim the extra tax relief when filling out their tax self-assessment form, though there’s also an option to donate this extra tax to charity too.
If you don’t do self-assessment contact HMRC and ask for a P810 form.