What is GiftAid
Gift Aid is a way for charities to increase the value of monetary gifts from UK taxpayers by claiming back the basic rate tax paid by the donor. It can increase the value of donations by 25% at no extra cost to the donor.
Gift Aid is worth over £1 billion a year to charities and their donors.
Tax relief for charities
Gift Aid is an easy way to help your charity or CASC maximise the value of its donations. Gift Aid allows you to reclaim basic rate tax (20% since 5 April 2008) already deducted from a donor's gift from HM Revenue & Customs (HMRC). You can work out the amount of tax you can reclaim by dividing the amount donated by four. This means that for every £1 donated, you can claim an extra 25 pence.
Tax relief for donors
If a donor is a higher rate taxpayer, they too can benefit from tax relief as they can claim back the difference between the higher rate of tax at 40 per cent and the basic rate of tax at 20 per cent on the gross value of the donation – a total of 20 per cent. So if £1 was donated, the gross donation would be £1.25, so the donor could claim 25 pence of tax back (20 per cent of £1.25).
The donor must pay at least as much UK tax (Income Tax and/or Capital Gains Tax) as the amount of tax that you’re reclaiming in the year that you reclaim it. You must advise the donor of their requirement to pay tax and keep a record of your notification along with the donor’s confirmation – known as a Gift Aid declaration.
How to claim Gift Aid
Follow the below links to understand the details of claiming Gift Aid and how to Submit your Claim online.
TAAP Gift Aid
TAAP GiftAid is a full end to end system which includes a contactless payment solution for donations, Donor database and HMRC Gift Aid data automatically generated ready for submission.