Gift Aid donations and how the

Gift Aid donations and how they relate to your tax return

The Gift Aid scheme is available to all UK taxpayers.

Gift Aid donations and how the

The charity or Community Amateur Sports Clubs (CASC) concerned can take a taxpayer’s donation and, provided all the qualifying conditions are met, can reclaim the basic rate tax allowing for an extra 25p of tax relief on every pound donated to charity.

Higher rate and additional rate taxpayers are eligible to claim tax relief on the difference between the basic rate and their highest rate of tax. This can be actioned through their Self Assessment tax return or by asking HMRC to amend their tax code.

HMRC has recently published new guidance on Gift Aid donor intermediaries. Since 6 April 2017, donors can provide intermediaries, that collect donations for charity, the authority to create Gift Aid declarations on their donations. This makes it easier for donors who give through digital channels, such as online platforms and SMS text messaging to Gift Aid, their donations.

The authorisation is valid from the time it is given until the end of the tax year. If authorisation is given on or after 1 March then the donor intermediary can create and give Gift Aid declarations for the remaining part of that tax year and the following tax year. Donors can also remove their authorisation at any time by contacting the intermediary.

There is also a requirement for intermediaries to produce an annual statement for the donor between the 5 April and 31 May for the previous tax year. The statement must be sent directly to the donor, or the donor must be informed that it has been produced and provided with instructions on how to access it.

There is no requirement to send a statement to donors who only make one gift aid donation in a tax year or who donated less than £20 in total in a tax year. There are penalties for intermediaries for any failure to keep records or issue a statement.

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