HMRC and Gift Aid - Tax relief for charities
by Nakhat Zahir (Funding Advice Worker)
22 June 2010
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 means that for every £1 donated, your charity or CASC can receive 28 pence, so the total value of the donation is £1.28.
Full information is on Website:
news from Reading Voluntary Action (RVA)
