A quick introduction to claiming Gift Aid
According to an article in Charity Times, charities in 2018 missed out on £600 million of unclaimed Gift Aid. This is a staggering amount of money that could be utilised for the good of society.
This helpful guide will help those charities or community amateur sports club (CASC) that are either new to Gift Aid, or have unclaimed Gift Aid submissions for up to four years. (You need to claim for a donation within 4 years of the end of the financial period you received it in).
What is Gift Aid?
You can claim back 25p every time an individual donates £1 to your charity or community amateur sports club (CASC).
You can claim Gift Aid on donations from individuals. The donor must have paid the same amount or more in income tax Capital Gains Tax in that tax year and make a Gift Aid declaration that gives you permission to claim it?
The following infographic courtesy of HMRC demonstrates the reason why and the ease by which a charity can benefit from Gift Aid:
The following claims are also available for Gift Aid but there are special rules for:
- What funds from sponsored challenges for example
- overseas treks or marathons
- charity membership fees
- church collections
- selling goods on behalf of individuals, for example through a charity shop
- charity events or to view charity property
- charity auctions
- volunteer expenses donated back to your charity or CASC
- funds raised through charities involved in running schools
Before you start, your charity or CASC will need to:
- be recognised as a charity for tax purposes
- add Charities Online to your HM Revenue and Customs (HMRC) online account
Your charity or community amateur sports club (CASC) can also use online services to claim:
Gift Aid, included under the small donations scheme, you may also be able to claim 25% on:
- cash donations of £30 or less
- contactless card donations of £30 or less collected on or after 6 April 2019
This is called the Gift Aid small donations scheme (GASDS). You do not need a Gift Aid declaration to claim.
From 6 April 2016, you can claim up to £2,000 in a tax year or £1,250 for earlier years.
Your charity or CASC must have claimed Gift Aid:
- in the same tax year as you want to claim GASDS
- without getting a penalty in the last 2 tax years
- in at least 2 of the last 4 tax years (without a 2-year gap between claims) if you’re claiming on donations made before 6 April 2017