How Gift Aid works
When you make a Gift Aid declaration, the charity reclaims an extra 25p for every £1 you give, at no extra cost to you. Your total Gift Aid donations in a tax year (6 April to 5 April) must not exceed 4 times the tax you've paid in that year, or the charity can end up reclaiming more than you actually paid.
Claiming your own relief back
If you pay tax above the basic rate, you can personally claim back the difference between your rate and the basic rate. GOV.UK's example: you donate £100, the charity claims Gift Aid to make it £125, and as a 40% taxpayer you can claim back £25 (£125 × 20%). This is claimed on your Self Assessment return, or by asking HMRC to adjust your tax code.
Carrying a donation back a year
Unusually, Gift Aid lets you carry a donation back to the previous tax year, if you make the claim by the time you submit that year's return. GOV.UK says this can help if you want relief sooner, or if you won't pay higher-rate tax this year but did the year before. The combined donations still can't exceed 4 times the tax you paid in the year you're claiming against.
Scotland
GOV.UK notes that Scotland's different Income Tax rates apply in the same way — the relief you can claim depends on the gap between your Scottish tax band and the basic rate.
Getting the figures right
Gift Aid relief is easy to miss if you don't keep track of your donations through the year. We include it in your Self Assessment return so you claim everything you're entitled to.
Need a hand with your return?
We prepare and file Self Assessment returns for directors, sole traders and landlords, and tell you exactly what is due and when before anything is submitted. Call 0114 327 1480.