What is Gift Aid
Gift Aid is a government scheme that is open to all charity supporters who pay UK income and capital gains tax. For every pound you earn you pay 25p (or 20% basic rate of tax). By signing up for Gift Aid, every time you donate, your charity can reclaim the tax you have paid based on the value of your donation. So, a £10 donation from you enables charities to reclaim £2.50. Charities are very dependent on Gift Aid.
How do I know if I have paid enough tax?
In one financial year, you must have paid at least 25p in income or capital gains tax for every £1 you donate to charity. Every income taxpayer has a tax-exempt threshold before they start paying tax. So please ensure you are paying enough tax to Gift Aid your donations
If you make total donations of £100 to all your charities in one tax year 6 April – 5 April, you will need to have paid at least £25 in tax in that tax year
If you need help you can either contact HMRC at 0300 200 3319, make sure you have your National Insurance number or Self-Assessment Unique Taxpayer Reference, or you can speak to an accountant
What if I don’t pay enough tax?
Unfortunately, HMRC can only pay Gift Aid tax to charities if you the donor have paid enough income or capital gains tax to cover the gift aid on ALL your donations to your favourite charities, therefore the scheme is only open to UK taxpayers who have paid enough tax
Who will be able to access my Gift Aid information?
Only HMRC and our charity team can access your data. We never share your data for marketing purposes with any other organisation or business. We do not share your information with anyone else, not even your other family members without your permission.
Why is Gift Aid important?
Many charities rely on the extra income Gift Aid provides. Every donation received which can be gift aided adds 25p for every pound donated, that means for Seachange
On a £20 donation, an extra £5 Gift Aid could provide transport to get someone to the hospital for an appointment.
On a £50 donation, an extra £12.50 Gift Aid could provide a meal for a low-income client.
On a £100 donation, an extra £25 Gift Aid could provide a session for cognitive stimulation for a dementia client.
What is a Gift Aid Declaration form?
You need to make a Gift Aid declaration to evidence to HMRC you have given us permission to claim Gift Aid. You usually do this by filling in a Gift Aid declaration form - contact the charity if you require a form or click <here to download a Gift Aid declaration>. However, more and more charities are using the website to collect Gift Aid, so if you make a donation using our website, you will be asked to add Gift Aid to your donations that way. Make sure you understand your responsibility to have paid enough tax
Do I need to make a declaration every time I donate?
No! Unless you choose to do this. Most charities use an enduring declaration, meaning if you paid enough tax all your donations including any donations you may have made in the past four years and in the future will, if eligible, have Gift Aid claimed on them
How do I know if I am eligible
You qualify for Gift Aid if you meet the following criteria:
- You choose to add Gift Aid (it's voluntary)
- You are a UK taxpayer
- You pay enough tax*
What do you mean by “my own money”
Gift Aid can be claimed on both individual donations and sponsorship donations provided you are donating to a charity.
Certain donations are not eligible for Gift Aid. If your donations fall into any of the following categories, do let us know and we will make sure Gift Aid is not claimed:
- You have been charged an entry fee e.g., a ticket for a performance or a sports event
- You have bought something from our shop
- You have entered one of our competitions e.g., a raffle or sweepstake
- Your donation is on behalf of someone else or a group of people e.g., collection from work colleagues, or proceeds of a coffee morning
Why do you need my personal details?
HMRC need to know who is signing up for the scheme and can only do this by knowing your full name and your usual home address which they already hold on their records. Our record must match their records.
How do I cancel Gift Aid?
You can cancel your Gift Aid at any time and must cancel it if you stop paying tax. Simply contact us and we will cancel your declaration immediately
I am moving overseas
Enjoy the move! If you retain your UK tax status you can still make Gift Aid donations to our charity, we will still need notification of your usual home address even if overseas, and if there are any changes to the scheme which could affect your Gift Aid, we are obliged to contact you and let you know
If you live in Guernsey, Jersey, or the Isle of Man
Whilst all three are part of the British Isles, each has its unique tax system, which is NOT part of the UK tax system, therefore it is very unlikely you pay UK tax. As such, you are not eligible to join the UK Gift Aid Scheme. If in doubt, please check with your accountant
Do I need to notify you of my change of Address
Yes please. We know you will have so much to do when moving house, so if you add us to your “notifications” list you can let us know your new address once you have moved, even better before you move.
What if I have opted out of receiving correspondence from you
We know supporters like to make sure we don’t contact them too often. if you have asked us not to contact you, we will continue to honour this. However, Gift Aid is a little different, the scheme is owned by the Government, and therefore we have the responsibility to make sure the donor is always eligible to be in the Scheme. So, every so often we may need to contact you to make sure we have your correct contact details, and you are still eligible to Gift Aid. Please don’t worry we will only do this when necessary
Can I receive an Annual Gift Aid Tax Statement?
Yes! Please contact us if you require a list of all the donations which you have expected to have Gift Aided from the last tax year which ended in April.
Here is our latest Gift Aid declaration form, Gift Aid Declaration Seachange
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