Gift Aid – your questions answered

Click here to download a Gift Aid declaration form

What is Gift Aid?

The current system of Gift Aid was introduced by the government in April 2000 to encourage more people to donate to charity. Effectively it makes your donation worth 25% more by allowing charities to claim back the tax paid on the money when it was originally earned provided the giver is a current UK taxpayer.

You do not need to be working full time in order to pay tax. For example if you have a deposit bank or building society account, own stocks or shares, or have a pension other than the basic state pension, you are probably a taxpayer and can Gift Aid your donations making them worth 25% more at no extra cost to yourself.

How do I know if I’m a UK tax payer?

You are a UK tax payer if:

• Tax is taken from your wages or salary in PAYE before you receive your pay
• You have to fill in a self-assessment form each year
• You have any taxable savings (in a Building Society, for instance), or a pension plan, or investment income
• If you have recently paid any capital gains tax, or expect to pay it in the near future. This could be on the sale of a property or some shares, for example.

If any of these applies to you, please complete and return your declaration so LEPRA Health in Action can reclaim the tax on your donations. Please note: Inheritance Tax does not count as UK income tax.

What if I don’t pay UK tax or stop paying it?

Please let us know if you don’t pay tax by calling 01206 216711. We can then make a note on your records and not reclaim tax in future.

What if I’m a pensioner?

Many people mistaken believe that once they retire they no longer pay tax. However if your income from a private pension plan exceeds your personal tax free allowance, you have interest from a savings account or you pay capital gains tax if you sell property or shares, you will still pay tax. For full details see the HMRC website. 

What if I’m a higher rate tax payer?

LEPRA can still only claim back at the basic rate, but please complete and return the Gift Aid Declaration anyway. You can tick a box on your self-assessment tax return form nominating LEPRA to receive the other 18%. The relevant code for LEPRA Health in Action is ZAC64FG

What if I’m a lower rate tax payer?

If you pay a lower rate (10% or 20%), LEPRA can still claim back 25p for each £1 you donate, provided you pay enough tax to cover the claim in the tax year you make the gift(s).

Does Gift Aiding commit me to give money?

No, absolutely not. It simply means that if you do decide to donate any amount to LEPRA, we can immediately claim the tax back from the Inland Revenue -- an extra 25p for every £1 you donate at no cost to yourself.

Who will have access to this information about me?

Only LEPRA and the Inland Revenue will have this information -- we do not share this personal information with anyone else.

What if I send my donations via the Charities Aid Foundation (CAF)?

If you make donations via CAF voucher, tax has already been reclaimed. However, please fill the Declaration form in anyway so that any separate donations you may make can be tax effective as well.

Is it really that easy? What’s the catch?

There’s no catch. You just complete the Declaration on-line. Then if you choose to give to LEPRA in the future we will be able to claim back the tax from the Government without costing you an extra penny.

Please notify us if you want to sign up to Gift Aid, or if your tax status changes, by filling in one of our Gift Aid forms, or telephoning us on 01206 216711 or by emailing Finance@leprahealthinaction.org.