Gift Aid submissions are best done using digital software – it’s quicker, easier and helps to spot errors that can hold up your claim making its way to your charity.
Claiming Gift Aid is easier with software like Gift Aider, plus you have the benefit of it linking to your CRM and keeping your records not only safe and secure,but organised should you need them in the future to check or confirm information or go through a HMRC audit.
Here’s our guide to claiming Gift Aid, based on what our charity clients frequently ask us.
How much Gift Aid can a charity claim?
There’s no limit – but the Gift Aid can only be claimed from people who have paid the tax in the first place.
How quickly must you claim Gift Aid?
Cashflow for a charity is important, so claiming Gift Aid regularly should be considered.
Claims should be made within four years of the end of the financial period you received it in.
How often can you claim Gift Aid?
As often as you like – regular claims will help cashflow.
How long does it take my Gift Aid to be paid?
Up to 4 weeks from your claim
Can Gift Aid be claimed retrospectively or backdated?
Yes – up to four years after the donation was given
Can Gift Aid be claimed on cash donations?
Yes – but you must claim on small cash donations within two years from the end of the tax year that you collected them and give the total amount of the small donations when making your claim.
Can Gift Aid be claimed on corporate donations?
The rules on benefits offered to corporate donors are the same as the benefit limits for individuals. In the case of a company owned wholly by a charity or a group of charities, the company is able to claim a tax deduction for Gift Aid payments made within nine months of the year-end.
Can Gift Aid be claimed on membership fees?
Yes – as long as a Gift Aid declaration has been signed by the donor.
How does Gift Aid work in charity shops?
The shop agrees to sell the donated items on behalf of the donor, keeping all profits and claiming the tax back on them.
There are detailed rules around charity shops – see more on the Retail Gift Aid Scheme
How does Gift Aid work on third-party fundraising platforms like Just Giving?
The third-party platform will send Gift Aid claims to HMRC for all donations they have received – usually weekly.
Once HMRC sends the Gift Aid back to them, they deduct their handling fee and send the payment to the charity.
You can find more in-depth information on Gov.UK
https://www.gov.uk/government/publications/charities-detailed-guidance-notes/chapter-3-gift-aid#chapter-31-introduction