HMRC and Gift Aid - Tax relief for charities
by Nakhat Zahir (Funding Advice Worker)
22 April 2009
HMRC and Gift Aid - Tax relief for charities Gift Aid is an easy way to help your charity or CASC maximise the value of its donations, as you can reclaim tax from HM Revenue & Customs (HMRC) on its 'gross' equivalent - its value before tax was deducted at the basic rate. This is 20 per cent from 6 April 2008. You can work out the amount of tax you can reclaim by dividing the amount donated by four. This means that for every £1 donated, you can claim an extra 25 pence.
In addition, HMRC will automatically pay your charity or CASC a further three pence for every pound donated. This 'transitional relief' - to adjust to the fall in basic rate tax (from 22 per cent to 20 per cent) - is available on Gift Aid donations made from 6 April 2008 until 5 April 2011. This means that for every £1 donated, your charity or CASC can receive 28 pence, so the total value of the donation is £1.28. To help you with Gift Aid HMRC has produced a Gift Aid Tool Kit which can be downloaded from Website:
or sent to you if you contact them Tel: 08453 020203.
Full information is on Website:
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