If you're setting up a charity in the UK you will hopefully be aware of Gift Aid. This is a scheme enabling registered charities to reclaim tax on a donation made by a UK taxpayer meaning that the amount of the donation is increased. It is a very powerful scheme but it can seem daunting to people unfamiliar with the ins and outs of it.
According to HMRC's website:
"Gift Aid increases the value of donations to charities and Community Amateur Sports Clubs (CASCs) by allowing them to reclaim basic rate tax on your gift. If you pay higher rate tax you can claim extra relief on your donations. If you claim higher Personal Allowances or tax credits, Gift Aid donations can sometimes increase your entitlement."
The first step in getting Gift Aid to work for you is to ensure that your charity is properly registered. With Chapel and York we will help you to set up your charity and ensure it is as easy to operate as possible and also as cost effective as possible. And crucially, we will make sure that your charity can accept donations from UK taxpayers and reclaim Gift Aid on those donations: Under UK tax law, charities are encouraged to increase a contribution’s value by using a Government approved and HMRC administered plan called Gift Aid. A UK registered charity can, with a donor’s agreement, recover an extra 25p for every £1 gifted, from
HMRC. This amounts to the basic rate of income tax (currently 20%) suffered by a UK taxpayer on
the gross value of the gift. It does not cost the donor anything. A higher rate tax payer can
reclaim the difference between higher rate tax (currently 40% or 45%) and basic rate tax. This
claim is made on the taxpayers self assessment tax return.
Why choose Chapel & York?
- Your UK registered charity will get approval through us. We've been doing this for years
and have built up a good relationship with the Charity Commission.
- We have a proven track record. We have set up and managed charities from all corners of
the globe that support universities and other charitable organizations. We specialise in
setting up UK charities that wish to support charitable organizations based in Australia and
- Our world class team has over 50 years combined experience of fundraising knowhow.
- Unique. We are soon approaching our 20th year as an international and cross border
fundraising consultant and we are proud of our niche service.
- Competitive prices.
- Flexible payment options available.
Theguardian.co.uk - Gift Aid: five ways charities can make the most of it
Pruadviser.co.uk - Gift Aid, The Facts