What is Gift Aid? +Gift Aid is a simple way to increase the value of your gift to Practical Action - at not extra cost to you. If you pay tax in the UK, Practical Action can reclaim the basic rate tax (25%) on your gift. So, if you donate £20.00 it is worth £25.00. A Gift Aid declaration is a statement by an individual taxpayer that they want a charity to receive the tax paid on their donation back from the government.
What is the minimum value of a Gift Aid donation? +There is no longer a minimum value. Provided you have paid the necessary income and/or capital gains tax, all gifts of all sizes are eligible.
How do I know if my donations are eligible for Gift Aid? +
In order for Practical Action to reclaim the tax you have paid on your donations, you must have paid income and/or capital gains tax (in the UK) for each tax year (6 April to 5 April) at least equal to the tax that all the charities or Community Amateur Sports Club that you donate to will reclaim on your gifts for that tax year. Other taxes such as VAT and Council Tax do not qualify.
You are eligible for Gift Aid if you can say yes to any of the following:
- You pay income tax on paid employment
- You pay income tax on a private pension scheme
- You pay income tax on savings
- You have recently paid capital gains tax on the sale of property or shares - or expect to pay it in the near future
- You pay tax on Self Assessment
I'm not a taxpayer but my partner is. Can I still Gift Aid? +Yes, absolutely, so long as your donations are made from a joint account which includes your partner's name. When you give joint donations with your partner, we only require a declaration from one person. This can be either of you, but whoever signs it needs to have paid enough tax in each year to cover the Gift Aid that will be claimed on your joint donations each tax year.
I've paid tax on and off over the last four years, can I Gift Aid my donations at those times? +Yes, if you let us know the dates that you were paying sufficient tax we can update our records accordingly and claim the right amount at the right time.
What if I donate via CAF or any other tax efficient giving scheme? +Your CAF donations (or donations via any other tax efficient giving scheme) are already tax efficient, so we automatically exclude them from Gift Aid. You may have also made gifts by a different payment method which may be eligible. By ticking the declaration form we will not claim anything on your CAF donations but it will ensure that any other gifts you give are covered.
What if I'm a pensioner? +You might still pay tax on a private pensions scheme or savings account, or pay capital gains tax if you sell property or shares. You can check with your pensions advisor. The amount of tax you have paid needs to be more than the amount we will reclaim in each tax year (6 April to 5 April).
What if I am a higher rate taxpayer? +Practical Action can only reclaim on your gift at the basic rate. If you are a higher rate tax payer, you can claim the difference between the higher rate of 40% and the basic rate of 20% in your Self Assessment return.
What happens if I stop paying tax? +
Just let us know the date and we will take care of the rest. You can call us on 0800 389 1624.
What happens if I move or change my name? +
Just let us know as soon as possible so that we can amend your record. You can call us on 0800 389 1624.
Can I sign up to Gift Aid on the phone? +
Yes. You can make a verbal declaration right now by calling us on 0800 389 1624.
Is my signature required? +
No. HMRC only requires a tick box for the declaration and form to be dated.
Where can I find out more information? +
You can find out more about Gift Aid by visiting the HM Revenue & Customs website.
If you require any further information, please call the team on 0800 389 1624 or email email@example.com and we'll do all we can to help.