Gift Aid Awareness Day 2022

Every October since 2018, charities have been invited to participate in Gift Aid Awareness Day.

Gift Aid Awareness Day is organised by Charity Finance Group and this year’s campaign is #TickTheBox which focuses on the value of Gift Aid on the people and communities they serve.

Gift Aid is a tax relief for charities in the UK to help increase donations at no extra cost to the donor. When certain criteria are met, charities are entitled to receive an additional 25%. For example, a £100 donation becomes a £125 donation when processed with Gift Aid.

To qualify for Gift Aid, a donor must be a UK taxpayer who pays Income Tax or Capital Gains Tax of at least equal to the tax reclaimed by the organisation. They must also #TickTheBox on their Gift Aid declaration form and provide some basic personal details.

Higher rate taxpayers are entitled to claim the difference between the top rate of tax they pay and the basic rate on the total value of the donation. This can be claimed through their income tax return or by asking HMRC to amend their tax code. Using the example above, a 40% taxpayer can personally claim back £25, i.e. £125 at 20%.

For help understanding Gift Aid, please contact a member of our EQ Charities team via charities@eqaccountants.co.uk, or call one of our offices,