How to Claim Gift Aid as a Charity?

Gift Aid is a significant tax relief initiative that benefits both charities and donors in the UK. By enabling charities to claim 25p for every £1 donated, this scheme turns your contributions into something that matters even more. But how exactly can individuals and charities claim Gift Aid, and what are the rules? This guide will explain everything you need to know.

What is Gift Aid?

Gift Aid is a scheme that allows charities and CASCs (Community Amateur Sports Clubs) to boost eligible donations by reclaiming basic rate tax from HMRC. For donors, there's an opportunity to claim additional tax relief if you’re a higher-rate taxpayer. Here’s why it matters:

• Charities receive an additional 25% on every donation.
• Donors, depending on their tax status, can claim further tax relief.

It’s a simple system, but it comes with rules that both donors and charities must follow.