There are certain conditions to meet before claiming Gift Aid as a charity or as a community amateur sports club (CASC). This guide explains what Gift Aid is and how to claim this type of tax incentive in United Kingdom.
Further topics provide information on what kind of donations qualify for Gift Aid, how to get Gift Aid declarations from donors, and how to claim tax repayments using Charities Online.
To qualify for claiming Gift Aid as a charity, the donor must have:
Cash donations of no more than £20 may still qualify for Gift Aid (e.g. a collection) even if the if the donor does not make a declaration.
What is Gift Aid in UK? It is being able to claim back 25 pence for each £1 donated to your charity or community amateur sports club (CASC) by an individual.
You would need to:
The special rules for claiming Gift Aid apply to:
You would not be able to claim Gift Aid on certain types of donations, including:
Note: HM Revenue and Customs provide a list of the types of fundraising donations that charities and community amateur sports clubs (CASCs) can claim Gift Aid on and the exceptions.
Donors would need to supply a Gift Aid declaration to the beneficiary of their donation so that the charity or CASC can claim back the Gift Aid tax incentive. The declaration should state that:
Note: Charities and CASCs need to keep records of Gift Aid declarations for at least six (6) years after claiming tax back through the Gift Aid scheme in the United Kingdom.
Besides providing a clear description of the actual gift (donation), the information on a Gift Aid declaration form should also include:
HM Revenue and Customs provide example Gift Aid declaration forms that you can download and use them for:
Gift Aid rules allow you to put a declaration on collection envelopes issued by the charity. Even so, in some cases you can still claim on cash donations up to £20 if there is no declaration.
As a general rule, you should be able to claim a tax incentive of 25% on:
The process is the Gift Aid small donations scheme (also called GASDS for short). The main difference with the GASDS is the ability to make a claim even without a Gift Aid declaration.
Note: You can claim up to £2,000 in a tax year from the 6th of April 2016 (or up to £1,250 for earlier years).
To qualify, the charity or the community amateur sports club (CASC) must have claimed Gift Aid:
A GASDS claim cannot be more than ten (10) times a claim for Gift Aid. So, you could claim on £1,000 worth of donations through GASDS after receiving £100 of Gift Aid donations in the same tax year, for example.
Note: You would be able to claim on donations eligible for Gift Aid (excluding membership fees).
The regulations change if the charity has a community building (e.g. a religious building or a village hall). In this case, you may be able to claim more on donations collected (either):
Note: You must have hosted at least six (6) charity events at the location for it to count as a community building. At least ten (10) people must have attended all the events.
In this case, providing one of the charities has a community building, all the connected charities can (either):
Charities, Savings and International 2
HM Revenue and Customs
The connected charities would need to share a single £8,000 limit if:
Note: The rules about merging with another charity or CASC changed from the 6th of April 2017. Check to see if you can take on the record of good claims of the other charity.
Among the standard things you need to keep records of, are:
Note: You must also keep records of any contactless card donations taken (e.g. receipts from a card machine).
Taking collections in community buildings means you would also need to record:
Note: You should make a claim under Gift Aid small donations scheme (GASDS) in the same way that you would for Gift Aid.
Charities and community amateur sports clubs can use Charities Online to claim Gift Aid online, with:
Note: You must use electronic software for claims of more than 1,000 donations. You can get form ChR1 from the HMRC charities helpline if you prefer to apply by postal methods.
As a rule, the deadlines for claiming Gift Aid depend on the actual setup of the charity. You would need to claim for a donation within four (4) years of the end of the same financial period that you received it.
This will be:
Note: Claim on cash donations under GASDS within two (2) years of the end of the tax year when you collected the donations. Keep accurate records of these types of donations for a further two (2) years.
After you claim Gift Aid as a charity or community amateur sports club (CASC) you will receive the payment by BACS:
Note: You should contact HM Revenue and Customs (HMRC) charities helpline if a repayment is incorrect or you submitted a claim in error.
Claiming Gift Aid as a Charity or a CASC in United Kingdom