St Raphael's Gift Aid on donated goods
Frequently Asked Questions
What is Gift Aid?
Gift Aid is one of the easiest ways to make a donation to charity tax efficient. It’s a tax relief available to anyone who pays Income Tax. You can “gift aid” a donation to charity which means the charity can then claim money from the Inland Revenue that you have already paid in Income Tax, equivalent to an extra 25% on top of your donation, at no extra cost to the donor. The process is simple, all you need to do is sign a “Gift Aid Declaration”
What is a Gift Aid Declaration?
It is a statement by an individual income tax payer that they want a charity to be able to claim back some of the income tax they have paid, in addition to their donation to that charity, and that they have paid income tax at least equivalent to the value of the claim that the charity will make.
Gift Aid – Do I qualify?
To qualify for Gift Aid you must pay UK income tax, and pay at least as much tax as St Raphael’s will be entitled to claim in the same financial year.
How do you know if you pay Income Tax? You pay income tax if:
- You work and Income tax is taken from your salary or wages before you are paid
- You are self employed & pay income tax after filling in an annual tax return form
- You have a private pension, or investment income and pay tax on that income
- You have any taxable savings (e.g. in a Building Society)
Is there any other qualification?
Yes, the same qualification applies to Capital Gains Tax for example on the sale of a property, or shares. But note that paying Inheritance tax does NOT count.
What if a supporter does not pay income Tax?
If this is the case then unfortunately you are not able to make a Gift Aid declaration. If someones ONLY source of income is the state pension, or state benefits, you are unlikely to pay income tax and so will not quality to for Gift Aid.
What if the supporter is a pensioner?
They may still pay income tax on a private pension or savings, or they might pay capital gains tax if they sell property or shares.
“I support various charities, can I just sign up for Gift Aid once to enable all the charities I support to reclaim gift aid?”
No. Each charity is required by law to maintain its own records of gift aid donors and claims, so you will need to sign up for gift aid with each charity you wish to support.
What if I am a higher rate taxpayer?
St Raphael’s can only claim back at the basic rate of tax, but supporters should still sign the same declaration. However, as a higher rate taxpayer, if the supporter declares their donations on a tax return they can claim a rebate on the difference between the higher rate and basic rate when they fiull in a self-assessment tax return. Taxpayers can now also nominate a charity to receive any rebate that is due and HMRC will pass the repayment directly to the charity.
What if I am a lower rate tax payer?
If the supporter pays a lower rate (10%) St Raphael’s can still claim back 25p for each £1 they donate, provided that they have paid enough income tax to cover the claim in the tax year for which the charity claims money from HMRC.
“I have already in the past signed a Gift Aid declaration to St Raphael’s Hospice because of a money donation I made” Is that enough or do I need to sign up again for this shops scheme?
No. You need to sign up again for the shops gift aid scheme, even if you have already in the past signed a gift aid declaration for St Raphael’s for a “money” donation. That’s because the rules are different for donated goods sold via charity shops.
If I sign up for shops gift aid and in the future make a money donation to St Raphael’s Hospice is this gift aid declaration valid for the hospice to claim gift aid on a money donation?
Yes, it is valid for future money donations as well as shops donated goods.
What does the Gift Aid Declaration commit me to?
Nothing at all. It is simply saying that the charity may claim money from HMRC on any qualifying gift aid donation the supporter chooses to make.
How long does the declaration last for?
It covers present and future donations for as long as the donor qualifies eg for as long as the supporter continues to pay income tax.
What should I do if my tax status changes in the future?
If you cease to pay income tax, or the amount you pay is less than the amount the charity may be claiming, you should write to St Raphael’s Hospice to cancel the gift aid declaration.
Who will have access to this information about me?
Other than saying you pay income tax, there is no other personal or confidential information required. We certainly don’t need to know anything about your personal tax affairs - only that you do pay income tax. The forms have your name and address and telephone/email addresses, and will be stored securely in locked cabinets and only accessed by St Raphael’s staff who need to process that information.
Can donations from groups, organisations or companies be gift aided?
No. Only donations from individuals who pay income tax are eligible
