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Gift Aid is a government scheme that allows charities to claim 25p for every £1 donated by UK taxpayers, at no extra cost to the donor. By registering with HMRC, charities can significantly boost their income by reclaiming tax on eligible donations.
Guidance on Gift Aid
To claim Gift Aid, charities must comply with HMRC guidelines and ensure donations meet specific criteria. The key steps include:
Registering with HMRC as a charity or obtaining tax-exempt status.
Keeping accurate donation records.
Obtaining a Gift Aid declaration from donors.
A Gift Aid declaration confirms that the donor is a UK taxpayer and agrees to their donations being eligible for Gift Aid. This documentation is essential for compliance and claims.
Requirements for Gift Aid
To apply for and claim Gift Aid, the following criteria must be met.
Charity Status:
The organisation must be registered with the Charity Commission or recognised by HMRC as a charity for tax purposes.
Donor Eligibility:
Donors must be UK taxpayers who have paid enough Income or Capital Gains Tax to cover the amount the charity claims.
Gift Aid Declarations:
A signed declaration is required from each donor, confirming their taxpayer status and consent for their donations to be treated under the Gift Aid scheme.
Declarations must specify whether they cover a one-time gift or recurring donations.
Record-Keeping:
Charities must maintain detailed records of Gift Aid claims, including donor declarations and amounts claimed.
HMRC may conduct audits to ensure compliance with the scheme’s rules.
By partnering with us, your charity can navigate the Gift Aid registration process with ease, ensuring all requirements are met to maximise your fundraising efforts.
Contact us today to get started!