Gift Aid
How does Gift Aid work?
Gift Aid is a government initiative that allows donations given to charity to be tax-effective. As soon as you give your permission by completing a Gift Aid declaration form, we can claim the tax back on your donation. This means that a £10 donation will be worth £12.50 and for every £50 gift, we will actually receive £62.50.
Am I eligible for Gift Aid?
You are eligible for Gift Aid if you are a UK tax payer and the Income Tax and/or Capital Gains Tax you pay in that tax year is at least equal to the amount of Gift Aid claimed on all of your donations in that tax year.
If you pay less tax than the amount of Gift Aid claimed on all your donations in that tax year it is your responsibility to pay any difference.
Even if you are not employed, you are still eligible if you are paying tax on any of the following:
- Personal or occupational pension
- Stocks and shares
- Bank and building society savings accounts
- Rental income
- Overseas and UK investment dividends.
I am a higher rate taxpayer, what should I do?
If you pay tax at a rate of 40% or above, you can claim the difference between the higher and basic rate on your donation.
For example, if you donate £800 and claim gift aid on your gift, this makes the gross donation total £1000. You can claim personal tax relief of £200 (the gross donation equivalent times 20%). This makes the cost of your donation £600 but the gross donation total will still be £1000.
The same principle applies to additional rate (45%) tax payers.
To claim the difference, you need to:
- Include all your Gift Aid eligible donations on your Self Assessment tax return
- Ask HM Revenue and Customs (HMRC) to amend your tax code.
What should I do if I move house, or change my name?
HMRC requires Name, Surname, House Number and Postcode on a gift aid claim so please let us know of any change so that we can keep your record up-to-date on our systems.
How do I cancel my declaration?
Simply inform us that you are no longer a UK taxpayer, by emailing giving@york.ac.uk or by writing to us at OPPA, University of York, Heslington, YO10 5DD, and we will stop reclaiming tax on your donations immediately.
I am not sure if I will pay enough tax yet. What should I do?
We can claim gift aid up to four years after the donation is made as long as the donor paid enough tax in the tax year it relates to (April 6th - April 5th)
This means that you can let us know after you have completed a tax return that you paid enough tax and we can submit a back dated claim.