Gift Aid is an HMRC scheme which allows registered charities to claim back 25% of the donations received by individuals, from HMRC, with the approval of the donor i.e. a gift aid declaration.
This basically works by the donor paying income tax to HMRC and by signing a gift aid declaration, the donor in turn agrees that some the taxes paid in the year can be claimed back by the charity to which the donation is made.
For example, the donor pays £80 to a registered charity then and signs a gift aid declaration. The charity then makes a claim to HMRC, claiming back 25% of the £80 received from HMRC. HMRC will pay the charity £20.
For gift aid registered charities, for every £80 donation received, the effective donation is, in fact, £100.
In order to claim back the gift aid tax from HMRC, the charity must be registered and recognised by HMRC as a charity.
Part of this is a form filling exercise followed by sending HMRC supporting evidence to prove that the charity is legitimate in both its existence and activities.
We can assist you to get your charity registered with HMRC without delay.
Contact us today to start the process of getting your charity registered.
We offer a competitive rate for charities.
Our fee for the registration of the charity and filing the first gift aid claim with HMRC is £250.
We strongly recommend that the charity has received at least £2,000 of gift aid qualifying donations before making a claim. The claim can be delayed, and it is best to discuss with us before the claim is made.
Once your charity has been approved by HMRC and your first gift aid claims has been made, you will receive your first gift aid refund directly into your bank account.
However, as time goes on and the charity continues to receive donations, you will soon be required to file another claim to claim back the gift aid tax on the new donations received.
We can assist you with your ongoing gift aid donations for only £150 per gift aid claim.
As with your first claim, we would advise that you have received at least £2,000 of gift aid qualifying donations before making a claim. The claim can be delayed, and it is best to discuss with us before the claim is made.
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Specialising in dealing with the personal tax affairs of UK individuals, be they self-employed, landlords or entrepreneurs.
Tax Return Preparation, Tax Advice and other taxation services in Watford, Herts, UK.
Fair Fee Tax Return is the trading name of Littlebox Accounting Solutions Ltd, member of and licensed by the Association of Accounting Technicians (AAT). Registered Office: 39 Fuller Road, Watford, Hertfordshire, WD24 6QH. Registered in England, Company Number: 08463254.
Tax Accountants in Watford, Herts, UK.