Charitable Gifts

Gift Aid

Individuals can claim higher rate relief on cash gifts and payments to charities using gift aid. It allows a charity to reclaim the basic-rate tax on donations made by UK taxpayers from HMRC. Higher and additional rate taxpayers can claim an additional tax relief on the gross donation through their tax return at their marginal rate.

You can make a claim for a charitable donation made in one tax year to be treated as if it had been made in the previous tax year.

To qualify for gift aid you must pay at least as much tax as the amount the charities will reclaim on your gifts in the tax year in which you make them. You must make a declaration to the charity concerned.

Give As You Earn

Give As You Earn allows employees to make regular donations tax-free from their gross salary. The employer will deduct the amount from their salary for payment to the charity.

The taxable pay of the employee is reduced by the amount of their donation.