What is Required | Making a Donation | Gift Aid Your Donation | Pay Roll Giving |
Organise Your Own Event | Suggested fundraising activities
Gift Aid Your Donation
In April 2000 the Government brought in new legislation regarding individual donations to charities, allowing us to claim the tax on any donations made by a UK taxpayer. This increases the value of your donation at no extra cost to you.
What is Gift Aid?
It is tax relief for single or multiple cash gifts (cheque, bank transfer and credit card) made to UK charities by UK residents. There is no upper limit to the amount you can give in each tax year. Gift Aid tax relief is intended for outright gifts, not for payments to buy goods and services for you or your family. Also payments that have already received tax relief cannot be Gift Aid payments eg under a Payroll Giving scheme or by charity voucher.
How Does it Work?
You make a donation to TinyLife net of basic rate tax and give the charity a declaration so that it can claim tax back from the Inland Revenue.
Example - basic rate tax- If you send £100 to TinyLife. The Gift Aid scheme treats it as a gift made net of basic rate tax. If the basic rate of tax is 22%, this represents a gross amount of £128.
- gross donation = £128
- basic rate tax @ 22% = £28
- net donation = £100
If you pay tax at the higher rate, your gift will have the tax refunded at the basic rate but the net cost to you will be lower.
- gross donation = £128
- basic rate tax @ 22% = £28
- higher rate tax relief @ 18% = £23 (claimed through self-assessment form)
- net cost to donor £77
You must have at least as much income charged as the amount of your gross donation. If the donation exceeds this amount the Inland Revenue may ask you to make up the difference.
What Do I Need To Do?
We can send you a Gift Aid Declaration for you to complete with your name, your full address including postcode, our name (TinyLife), a description of the donations to which the declaration relates, a declaration to the effect that you want your donation to be a Gift Aid donation and the date of the declaration. It will also contain a note explaining that you must pay an amount of income tax or capital gains tax equal to the tax deducted from your donation(s).
You can also make an Oral Declaration but this will not be effective until we send you a copy of the declaration.
Cancellation of Written and Oral Declarations
You are entitled to cancel your declaration at any time. You may do so by notifying TinyLife in any form of communication.
Declarations Linked to Sponsored Events
If you do a sponsored event for TinyLife it is possible for the individual amount raised from each sponsor to count as a Gift Aid donation. We have designed our sponsor forms so that they can be used as a joint declaration form. The declaration is shown at the head of the form, with each sponsor being able to opt to have his or her sponsorship money paid to TinyLife as a Gift Aid donation by ticking a box. Therefore if you were to raise £500 for a sponsored event and everyone ticked the box the actual amount raised would be £641!
Just think how beneficial this would be to TinyLife. Always Gift Aid if possible.
Please tick our Gift Aid Declaration box on our online, or printed forms so that your donation is worth even more!
