What is Gift Aid?
Gift Aid is a tax relief on money donated to UK charities. This allows Hilton in the Community Foundation to reclaim tax back that would have previously been paid by the donor (currently 28p in every £1 donation).
Simply, if you are a UK taxpayer Hilton in the Community Foundation can claim back an extra 28p from the Inland Revenue for every £1 you donate. This means that the more sponsors that agree to gift aid, the more money you can add to your sponsorship total with no any extra work required. However there are restrictions- see below.
How do I claim Gift Aid from my sponsors?
Hilton in the Community Foundation will claim the Gift Aid on your behalf; however we do need your help to capture the information needed to do so.
To do this you simply need to encourage those who sponsor you and that are a UK taxpayer to fill in their full name and home address and tick the Gift Aid box on your sponsorship form. This then acts as their declaration for Hilton in the Community Foundation to claim Gift Aid.
When Gift Aiding sponsorship please make sure you send in all sponsorship forms to us at the same time as your sponsorship money.
What restrictions are there to claiming Gift Aid?
- We are unable to claim Gift Aid on sponsorship donated by a company.
- Gift Aid cannot be claimed on donations from purchased goods, for example, when selling merchandise.
- Unfortunately we are unable to claim Gift Aid if the address is incomplete.
Higher rate taxpayers
If you're a higher rate taxpayer, you can claim the difference between the higher rate of tax at 40 per cent and the basic rate of tax at 22 per cent on the total value to the charity of your donation (the 'gross donation').
A £100 gift aid donation is worth £128 to the charity, so you will reduce your tax bill by £23.
The charity receives £128 and the net cost to you is £77.
If you or your sponsors would like to fill in a Gift Aid declaration, simply download and complete the online Gift Aid form so that we can receive an extra 28p per pound! Do ensure that your sponsors are briefed about Gift Aid and tick the relevant boxes of the sponsorship forms if applicable.
Notes:
- You can cancel this Declaration at any time by notifying the charity.
- If in the future your circumstances change and you no longer pay tax on your income and capital gains equal to the tax that the charity reclaims, you can cancel your declaration.
- If you pay tax at the higher rate you can claim further tax relief in your Self Assessment tax return.
- If you are unsure whether your donations qualify for Gift Aid tax relief, ask the charity.. Or, refer to help sheet IR65 on the HMRC web site.
- Please notify the charity if you change your name or address.
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