What is Gift Aid?

Gift Aid is a government scheme that lets charities claim tax relief on the donations that you make to them.

The idea behind it is that you're usually making donations from your post-tax income. The charity then takes your donation, and – if you've agreed to Gift Aid – claims your basic-rate (20%) tax back from HM Revenue & Customs.

To claim Gift Aid on your donation, the charity will need:

  • Your name and address
  • You to declare that you pay tax in the UK of an amount at least equal to the donation you are making (those who pay no tax shouldn't use the Gift Aid scheme).
  • Your signature (or a box ticked if it's online) and the date.

Here's how it works...

You make a donation of £100 to a charity, and agree the charity can claim Gift Aid. The charity then claims £25 from the state in tax relief, meaning your total donation now amounts to £125. (Extracts taken from Money Saving expert 2023)

You can choose to add Gift Aid automatically when making an online donation, or alternatively download a form to return with your gift. For more information on Gift Aid and your eligibility please visit Gov.uk