How does Gift Aid work?
Gift Aid is one of the easiest ways to make your donation go further. The charity you are supporting reclaims the basic rate tax from HM Revenue and Customs. There is no extra cost to you and the process is simple – all you have to do is make a Gift Aid declaration.
How can I sign up for Gift Aid?
What does the Gift Aid declaration commit me to?
For every £1 you donate to RNIB in a financial year (from 6th April to 5th the following year), you must have paid 25p in Income or Capital Gains Tax in the same financial year to qualify for Gift Aid.
If you have made a Gift Aid declaration we ask that you let us know if you cease to pay enough Income Tax and/or Capital Gains Tax to cover the amount we will claim from HM Revenue and Customs on the donations you make.
We also ask that you let us know if you change your name and/or address.
What is a Gift Aid declaration?
It is simply a statement by an individual taxpayer that they want a charity to claim from HM Revenue and Customs the tax paid on their donation. This is a great way to add 25 percent to the value of your gift to RNIB without it costing you a penny more.
Gift Aid – do I qualify?
You must pay an amount in Income Tax and/or Capital Gains Tax to cover the amount RNIB will reclaim in the tax year (from 6 April to 5 April of the following year).
Inheritance Tax, Council Tax and VAT do not qualify towards Gift Aid.
How do I know if I pay UK Income or Capital Gains Tax?
You pay these taxes if:
- Income Tax is taken from your wages or salary before you receive your pay
- You pay tax after filing in a self-assessment form each year
- You have any taxable savings (in building society, for instance), or a pension plan or investment income.
- You have paid any Capital Gains Tax on the sale of a property or some shares, for example Inheritance Tax, Council Tax and VAT do not count as Income or Capital Gains Tax
If any of these apply to you, please consider completing your declaration so that RNIB can reclaim the tax on your donations.
Why does it work out at 25 pence for every pound given?
Although basic rate tax is currently 20 percent, the donation for £1 is treated as the net after tax from £1.25 (£1.25 minus 20 per cent is approximately £1). RNIB receives the 25 pence.
What if I don’t pay UK Income Tax and/or Capital Gains Tax?
Then, unfortunately, you are not able to make a Gift Aid declaration. If you want us to make a note of this on your records, please let us know by contacting us in one of the following ways:
105 Judd Street
What if I’m a pensioner?
You may still pay tax on a private pension plan or a savings account, or pay Captial Gains Tax if you sell property or shares. If this is the case, please consider making a Gift Aid declaration.
What if I’m a higher rate taxpayer?
RNIB can only directly claim back at the basic rate but please complete and return the declaration anyway.
As a higher rate taxpayer, if you declare your donations on your tax return, you can claim a rebate based on the difference between the higher rate and the basic rate when you fill in your self-assessment form.
What if I’m a lower rate taxpayer?
If you pay a lower rate (10 per cent or 20 per cent), RNIB can still claim back 25p for each £1 you donate, provided you pay enough tax to cover the claim in the tax year you make the gifts.
What if I make my donations via CAF (Charities Aid Foundation)?
If you normally make donations via CAF, tax has already been reclaimed. However, please fill in the declaration anyway so that any separate donations you might make are tax effective as well.
What if I buy raffle tickets?
Purchases such as raffle tickets are not treated by HM Revenue and Customs as donations and so the Gift Aid declaration does not apply to them. However please fill in the declaration to cover any additional or separate donations.
Can Gift Aid be applied to events sponsorship?
Yes, in most cases – please see sponsorship forms for more details. If you are being sponsored or sponsoring someone else, for example someone taking part in an RNIB skydive or running the London Marathon, please Gift Aid eligible contributions. Remember each sponsor needs to include their home address and postcode to enable RNIB to reclaim the tax.
How long does the declaration last for?
To simplify matters for both you and RNIB, the declaration wording normally covers past, present and future donations. We can back-claim four years and we will continue to claim until you tell us otherwise, so long as you are eligible.
Who will have access to this information about me?
Only RNIB and HM Revenue and Customs. We will not share it with anyone else.
What should I do if my tax status changes or I want to cancel my declaration?
Please let us know by contacting us in one of the following ways:
105 Judd Street