How Gift Aid works
When a UK taxpayer donates, Gift Aid lets the charity reclaim the basic-rate tax the donor already paid on that money — 25p for every £1. So a £100 donation becomes £125 in the charity's hands, at no extra cost to the donor. The only conditions: the donor is a UK taxpayer who has paid at least as much income or capital gains tax as all charities will reclaim on their gifts, and the charity holds a valid Gift Aid declaration.
Relief for higher-rate donors
If the donor pays tax above the basic rate, they can personally reclaim the difference between their rate and 20% on the gross gift, through their Self Assessment return. On a £100 gift (£125 gross), a higher-rate donor gets £25 back and an additional-rate donor £31.25 — which makes larger gifts cheaper than they look.
Keep the paperwork tidy Gift Aid claims rely on valid declarations and clean records. Getting the systems right — and reclaiming everything you're entitled to — is exactly the kind of thing a charity-specialist accountant sorts as standard.
