Gift Aid and UK Tax By declaring you are happy for us to claim Gift Aid, you will allow Jesus to reclaim the basic rate of income tax on your donation and increase the value of your gift by 25%. For your gift to qualify for Gift Aid, you must have paid income tax or capital gains tax that is equal to, or more than, the amount of tax that is claimed by each charity you have donated to within that tax year (6 April to 5 April). Taxes such as VAT and Council Tax do not qualify. Higher rate taxpayers are also entitled to claim tax relief on their gifts in the form of a rebate from HM Revenue & Customs. This is the equivalent of 25% of the original (net) gift to the college and means that a net gift of £1,000 to Jesus will cost the donor £750.
To claim Gift Aid the donor must pay income and/or capital gains tax at least equal to the amount that will be reclaimed.
For more information on Gift Aid, please see the HMRC website.
Charities Aid Foundation (CAF)The CAF Charity Account works like a bank account designed specifically for charitable giving. You decide how much you want to give and pay it into your account. Because CAF is a charity, you can claim back the tax on Gift Aid donations and add it to the amount in your account. You can also fund the account through payroll giving or by gifts of shares, exactly as with any other charity.
More information can be found on the CAF website.
Payroll GivingPayroll giving is a way of giving an amount of money each week or month from your pay. It is a tax-effective way for employees, non-executive directors and those receiving a company pension to give a regular amount to one or more charities directly from their income. It can also be used for a one-off gift.
The donation is made from your gross salary (before tax has been taken off). This means you receive tax relief immediately on the value of your gift. Another way of looking at it is that the money you would have paid in tax goes to your chosen charity.
More information can be found on HMRC’s website.
Tax-Efficient Giving from OverseasTo make a gift tax-efficiently from another country, please see below.