Gift Aid FAQs

How Gift Aid works
The Gift Aid scheme is for gifts of money by individuals who pay UK tax. Gift Aid donations are regarded as having basic rate tax deducted by the donor. Basic rate tax is 20 per cent, so this means that if you give £10 using Gift Aid, it’s worth £12.50 to the DHA.

How to make a donation using Gift Aid
In order to make a Gift Aid donation you’ll need to make a Gift Aid declaration as detailed on our Donate page. A Gift Aid declaration must include:

  • your full name
  • your home address

Making sure you’ve paid enough tax to use Gift Aid
You can use Gift Aid if the amount of Income Tax and/or Capital Gains Tax you’ve paid for the tax year in which you make your donation is at least equal to the amount of basic rate tax DHA will reclaim on your gift. A tax year runs from 6 April one year to 5 April the next. If you make a number of Gift Aid donations, you will need to consider the tax you’ve paid on each donation on an accumulative basis. If you don’t pay enough tax you will need to pay any shortfall in tax to HMRC.

You don’t necessarily have to be working to be paying tax. Apart from tax on income from a job or self-employment, the tax you’ve paid could include:

  • tax deducted at source from savings interest
  • tax on State Pension and/or other pensions
  • tax on investment or rental income (including tax credits on UK dividends)
  • Capital Gains Tax on gains

Other taxes such as VAT and Council tax do not qualify, nor does any non-UK tax.

How to check if you’ve paid enough tax
To work out if you’ve paid enough tax to cover your donations, divide the donation value by four. For example, if you give £100 in a particular tax year you will need to have paid £25 tax over that period. (£100/4 = £25). (Note that this calculation is based on the basic rate tax of 20 per cent)

Telling HMRC about your Gift Aid donations
It’s important to keep a record of the total amount of your Gift Aid donations for each tax year.

You’ll need to let HMRC know about your Gift Aid donations if:

  • you claim age-related Personal Allowance, Married Couple’s Allowance or tax credits
  • you pay higher rate tax
  • you want to carry back a Gift Aid donation


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