Gift Aid
Make your gift to BHCAC's worth even more at no extra cost to you
If you are a UK tax payer, we can receive 25p for every £1 you are giving. That really can make a difference! Gift Aid is a simple way to increase the value of your gift to BHCAC. Making your donation using Gift Aid will enable BHCAC to reclaim the basic rate tax on your gift. This means that if you donate £10 using Gift Aid in a tax year, that gift is worth £12.50 to BHCAC. This is because the government’s Gift Aid scheme allows us to reclaim tax on donations. For your donation(s) to be eligible for Gift-Aid you must pay an amount of income tax and/or capital gains tax for each tax year (6 April one year to 5 April the next) that is at least equal to the tax that BHCAC reclaims on your donations in the appropriate tax year. If you are a higher rate taxpayer, you can claim relief on the difference between the basic rate and higher rate of tax. If you do not pay tax, you should not use Gift Aid.
How does my gift qualify for Gift Aid?
Selecting the Gift Aid declaration tick-box enables BHCAC to claim back the tax on your donation. BHCAC can only reclaim the basic rate of tax if you have paid enough tax for the tax year to cover the amount reclaimed on your gifts. The tax year runs from 6 April one year to 5 April the next. This is subject to the normal time limit in which tax can be reclaimed which is normally four years. How do I know I have paid enough tax?
For most people it will normally be easy to determine if you have paid enough tax to cover the amount the charities will reclaim. That tax paid can be income tax or capital gains tax at any rate and can include tax paid on savings and income but it does not include tax paid in the year to settle bills for any other tax year. It cannot include tax paid in the year to settle bills for any other tax year.
What is my income tax rate?
| Earnings under your Personal Allowance | No income tax paid |
| Earnings between PA and PA + £37,400 | 20% |
| Earnings between PA + £37,401 and £150,000 | 40% |
| Earnings over £150,000 | 50% |
I am a higher rate taxpayer. Can my chosen charity reclaim the higher rate tax paid?
No. BHCAC can only reclaim tax on your gift at the basic rate. If you are a higher rate taxpayer, you can claim the difference between the higher rate of tax at 40% and the basic rate of tax at 20% in your Self Assessment return.
Do I have to make a declaration with every gift?
No. One declaration will cover all the gifts you make to a charity for whatever period you wish. For example, it can cover gifts you might already have made to a particular charity in the previous four years or it can cover the gifts you make in the future.
Self-assessment tax payers
From April 2004 self-assessment taxpayers are able to use the tax return form to donate to charity all or part of any repayment due to them. The donation will go direct to the chosen charity’s bank account; the taxpayer can choose to Gift Aid the donation (see above) and any tax Gift Aided donations will be paid to the charity without the need for a claim.
