What is Gift Aid?
Gift Aid is a government scheme that allows charities to reclaim the tax that you have already paid on your donations through UK income tax or capital gains tax. Children’s Cancer and Leukaemia Group (CCLG) can reclaim 25p for every £1 that you donate.
Which donations are eligible for Gift Aid?
Most regular and single personal donations are eligible, for example Direct Debits, Standing Orders, cash and cheques.
How do I know if my donations are eligible for Gift Aid?
You are eligible for Gift Aid if you are a UK taxpayer. You are a UK taxpayer if you pay tax on your wages before you receive them, if you pay tax on self employment profits, if you have any taxable savings such as those in a building society, if you receive a private pension that you pay tax on, if you pay tax on investment income, or if you have paid any capital gains tax in the same tax year you made the donation(s).
The amount of tax you pay in a tax year must be at least equal to the amount CCLG (and any other charity you donate to) can reclaim on your donations in the same tax year. This is 25% of the amount(s) donated.
The tax year runs from 6th April to 5th April the following year.
What if I’m a Scottish taxpayer?
The same eligibility rules apply to Scottish taxpayers, even if the tax rates are different to those in other parts of the UK. CCLG will still be able to reclaim 25p for every £1 that you donate.
What if I am a higher rate taxpayer?
CCLG can only reclaim tax on your donation(s) at the basic rate. If you are a higher rate taxpayer, you can claim the difference between the rate you pay and the basic rate through your Self Assessment tax return or by asking HMRC to amend your tax code. This can be donated to CCLG if you wish to do so. Scottish taxpayers can do the same using the Scottish tax bands to calculate the difference.
What if I’m donating through a third party platform?
If you donate through a third party platform such as JustGiving, you can complete a Gift Aid declaration when making your donation. You don’t need to complete a separate CCLG declaration.
What is a Gift Aid Declaration?
This is a form you complete stating that you are eligible to Gift Aid your donation(s) and are happy to do so. A Gift Aid Declaration must show the name of the charity, the donor’s title, full name and home address (preferably the full address but at least the flat/house number or name, and postcode), the donation amount and the date of the donation. It doesn’t need a signature. CCLG will provide you with a Gift Aid Declaration form. A Gift Aid declaration can either cover just one donation, or all the donations you make. If you allow us to claim Gift Aid on your donations going back four years you must let us know if you didn’t pay enough tax in any of those years.
Please let CCLG know if your tax status changes.
Can we make donations from a joint bank account?
If donations are made from a joint account, we ask that just one person completes the Gift Aid Declaration. They must be a tax payer and have paid enough tax to cover the Gift Aid that will be claimed on your joint donations each tax year plus any other donations they make. To enable HMRC to identify the correct person please use your full name and address on the Gift Aid Declaration.
Can I Gift Aid to other charities?
You can Gift Aid all the donations you make to different charities. You will have to make a Gift Aid Declaration for each charity and ensure that you pay enough tax to cover the Gift Aid that will be claimed on your donations each tax year.
I’m a pensioner. Can I Gift Aid?
Yes, as long as you pay enough tax to cover the Gift Aid that will be claimed on your donations each tax year. You may pay tax on a private pension scheme or a savings account, or you may pay capital gains tax in that tax year.
I meant to Gift Aid my donation but didn’t. What can I do?
If you made the donation directly to us, get in touch on info@cclg.org.uk to let us know and we will send you a Gift Aid Declaration to complete. Once we receive your completed form we will be able to claim the Gift Aid.
If you donated through a third party platform such as JustGiving let us know as quickly as you can, as we may be able to ask them to amend their records. Failing that, we can ask them to refund the donation and you can make it again with the Gift Aid.
Does it cost me anything to Gift Aid, or will it change my tax status?
It doesn’t cost anything, because Gift Aid is taken from tax you’ve already paid. And there’s no change to your tax status.
What if I donate via the Charities Aid Foundation?
We won’t claim Gift Aid on these donations, as they are already subject to tax relief. If you have also made gifts by a different method, they may still be eligible.
Do I need to inform you if my details change?
Please contact us if:
- You want to cancel your Gift Aid Declaration for any reason
- Your name or home address changes
- You no longer pay sufficient tax but still want to donate
When can’t Gift Aid be claimed?
Not every donation is eligible for Gift Aid, even if the person making the donation has paid enough tax. We can’t claim Gift Aid:
- If you are donating on behalf of someone else or a group of people, for example if you are making a collection, because HMRC needs to know the details of the person making the donation.
- If you are donating on behalf of a limited company. However, if you are a sole trader or in a Partnership you can make Gift Aid Declarations as long as you’re donating using your own money.
- If you are donating to a family member who is taking part in an event and the charity they’re raising money for is contributing to the cost.
- If you are donating money from the sale of products or services, for example a bake sale.
Where can I find more information about Gift Aid?
You can find out more about Gift Aid by visiting HM Revenue and Customs website. Alternatively, please contact us at info@cclg.org.uk, or on 0333 050 7654, or at Century House, 24 De Montfort Street, Leicester, LE1 7GB and we will answer any questions you have.