Tax Efficient Giving
Donations to charity from individuals are tax free. You can get tax relief if you donate:
- through Gift Aid
- straight from your wages or pension, through payroll giving
Gift Aid
As a charity, GiveOut has registered with HM Revenue and Customs (HMRC) to be part of the Gift Aid scheme. This means we can claim back the tax you’ve already paid on your donation.
When you make a donation, we ask you to fill out a Gift Aid declaration. We can provide a soft or hard copy form, or you can complete the declaration online here.
As long as you pay enough tax on income or capital gains, GiveOut can then claim an extra 25p for every £1 you give. It will not cost you any extra.
Higher rate taxpayers
As well as GiveOut benefitting from the Gift Aid scheme, higher rate taxpayers can claim back the difference between the tax they’ve paid on the donation and the gift aid we have claimed.
If you pay tax above the basic rate, you can claim the difference between the rate you pay and basic rate on your donation. Do this either:
- through your Self Assessment tax return
- by asking HMRC to amend your tax code
Example
You donate £1,000 to GiveOut – we claim Gift Aid to make your donation £1,250. You pay 40% tax so you can personally claim back £250 (£1,250 x 20%).
Payroll giving
If your employer or pension provider offers a Payroll Giving scheme, any donations you give through the scheme will be taken before Income Tax is taken off.
You’ll still pay National Insurance contributions on the amount of your donation. But you won’t pay any Income Tax on the amount you donate.
Leaving money in your will
If you leave money to GiveOut in your will, the donation will either:
- be taken off the value of your estate before inheritance tax is calculated, or
- reduce your inheritance tax rate if more than 10 percent of your estate is left to charity
Thank you so much for your support. The above has been prepared for informational purposes only and is based on information provided by the UK government. It is not intended to provide, and should not be relied on for, tax, legal or accounting advice. All donors should seek independent advice before making a donation.