Gift Aid is a quick and easy way to make your donation go even further. Here’s a quick summary of how it works.
How does Gift Aid work?
All qualifying donations made to charity by UK taxpayers may be eligible for Gift Aid. By making a donation to the Trust using Gift Aid, we can reclaim the basic tax rate on your gift, making your money go further.
The basic tax rate is 20% meaning that if you give £10 to the Scottish Wildlife Trust using Gift Aid, your donation is worth £12.50 to us. In other words, for every £1 you donate, we can reclaim an additional 25p from HMRC at no extra cost to you.
This remains the same even if you are a Scottish taxpayer.
How can I make a donation using Gift Aid?
In order to make a donation using Gift Aid, you will need to complete a Gift Aid declaration. This form covers every gift you make to the Scottish Wildlife Trust for however long you choose, and can also include any donations you have already made over the past four years.
The Gift Aid declaration must include:
- Your full name
- Your home address, including postcode
You can also use Gift Aid for joint donations. This is important if you are both tax payers and have a joint membership as it allows us to claim Gift Aid on subscriptions and donations gifted by either partner.
From April 2018 there are now five tax bands for Scottish taxpayers. The Starter Rate of 19% is lower than the Basic Rate but this will not affect your Gift Aid donations as long as you have paid enough tax to qualify for Gift Aid.
The amount of Gift Aid that is claimed is 25p for every £1 you donate, regardless of where in the UK you pay tax.
How can I check if I’ve paid enough tax to qualify?
To qualify for Gift Aid, you must have paid at least as much Income and/or Capital Gains tax in the tax year (6 April to 5 April) to cover the amount that the Scottish Wildlife Trust, and all other charities and Community Amateur Sports Clubs (CASC) you donate to, will claim back. Council tax and VAT do not count.
If you are paying tax at the new Starter Rate in Scotland, introduced in April 2018, you may wish to check whether you still qualify for Gift Aid.
For advice on how to check if you have paid enough tax to qualify for Gift Aid please visit HMRC website
What happens if I’m a higher rate taxpayer?
If you pay a higher rate tax, you can claim back the difference between the rate you pay and the basic rate of 20% on your donations.
For example, if you donate £100 to charity – they claim Gift Aid to make your donation £125. You pay tax at 41% so can personally claim back £26.25 (£125 x 21%). This applies at the Higher or Additional Rate, or if you are a Scottish taxpayer – the Scottish Intermediate, Higher or Top Rate.
You can do this either:
- Through your Self-Assessment Tax Return
- By asking HMRC to amend your tax code, there is more information available on how to do this on HMRC website