Gift Aid Explained

Gift Aid doesn’t cost you a penny. Completing a Gift Aid declaration means that we can reclaim the tax on your membership subscriptions and donations (providing you are a UK taxpayer) directly from HMRC.

To qualify for Gift Aid, you must pay an amount of UK Income and/or Capital Gains Tax which is at least equal to the amount that we and all other charities will reclaim on your donations in each tax year (6 April to 5 April). Most charitable giving can be gift aided, however there are some exceptions such as memberships purchased as gifts for another adult and money paid via charity vouchers and cheques. If you would like to check whether you donations are eligible, please get in touch with us.

Most people pay income tax on their earnings through their employer or private pension scheme, or by completing a self-assessment tax return to HMRC should they be self-employed. Savings and bank account statements will also normally show if tax has been deducted and the amount.

New rules introduced in April 2016 mean that a Dividend Tax Allowance now applies and dividend income up to the amount of that allowance will be tax free. So if you are receiving large amounts in dividends but with minimal other income, and if you make sizeable Gift Aid donations, you might need to check your tax position.

As a pensioner you will receive a P60 form each year - keep this safe, as it will show any tax deductions. 

You are usually aware if you pay capital gains tax, as you would have had to declare it. This would have been declared by yourself via a self-assessment form to HMRC or by your accountant/financial advisor.

If you no longer pay sufficient UK Income or Capital Gains tax, please inform us as soon as possible and we will stop claiming Gift Aid on your membership and/or donations. If you pay less Income Tax and/or Capital Gains Tax than the amount of Gift Aid claimed on all your donations in the tax year, it is your responsibility to pay any difference to HMRC. Gift Aid is claimed at 25p per £1 of your support. Taxes such as VAT and Council Tax do not qualify for Gift Aid.

If you have joint or family membership with the Lancashire Wildlife Trust and your partner pays tax, then he/she can tick the Gift Aid box provided that the membership is paid either from your partner’s account or from a jointly held or named account (i.e. the payment is from the ‘Gift Aider’). 

Every penny counts! We can reclaim 25p in every pound, so an annual membership worth £48 a year would equate to £12 of Gift Aid per year.

No. Completing a gift aid declaration for one charity means that only that one particular charity can reclaim the tax on your donations, so it’s important to tick a box for each charity that you want to claim Gift Aid. However, if you pay less Income Tax and/or Capital Gains Tax than the amount of Gift Aid claimed on all your donations in the tax year, it is your responsibility to pay any difference to HMRC. Gift Aid is claimed at 25p on every pound of your support.

You must pay an amount of UK Income and/or Capital Gains Tax in each tax year (6 April to 5 April) which is at least equal to the combined amount of gift aid that charities are claiming. If you pay less tax than this then you can stop one or more of the declarations to ensure the gift aid is not more than the tax you are paying. If you pay an equal amount or more, you can declare Gift Aid with as many charities as you like.

Not unless we ask you. All your donations and subscriptions are covered with one declaration. 

Not if you are a standard rate taxpayer and do not receive a tax return from HMRC. However, if you do receive a tax return, you must declare the information. 

If you pay a higher rate tax, you can claim back the difference between the rate you pay and the basic rate of 20% on your donations. You can do this either through your self-assessment tax return or by asking HMRC to amend your tax code.