Make your donations go further with Gift Aid – a simple way to reduce your income or capital gains tax while increasing the value of your charitable contributions.

For Basic Rate Taxpayers (20%):

• When you donate via Gift Aid, the charity can reclaim 20% tax from HMRC on your contribution.
•  For example:
  You earn £12.50, and £2.50 (20%) is taxed, leaving you £10.
  When you donate £10, the charity reclaims the £2.50 tax, so your donation totals £12.50.

For Higher Rate Taxpayers (40% or above):

• You can claim back the difference between the higher rate you’ve paid and the basic rate claimed by the charity.
• For example:
  You donate £100.
  The charity claims £25 (20%) from HMRC, making your donation worth £125.
  You can claim an additional £25 from HMRC via self-assessment or PAYE.

PAYE Tax Code Adjustments:

• If you pay higher rate tax through PAYE, HMRC can adjust your tax code for Gift Aid donations.
• Example:
  A donation of £80 under Gift Aid means the charity reclaims £20 (20%).
  You’re eligible for an additional £20 relief via a £50 tax code adjustment (saving 40% on £50).

Company Charitable Donations:

• Companies can deduct donations from profits before paying Corporation Tax.
• Donations reduce taxable profits, meaning you pay less tax.

Sponsorship Payments:

• Qualify for Corporation Tax deductions if the charity provides:
  Public support for your company’s goods or services.
  Permission to use their logo.
  Opportunities to sell your goods or services at their events or premises.
  Links from their website to your company website.