Gift Aid is a UK government tax scheme, which enables the university to claim tax relief on donations from UK tax payers. If you would like to see 25% added on top of your gift, you will need to complete the Gift Aid Declaration form.
A Gift Aid Declaration Form can apply to a Single donation form|| of any amount given by cheque or by Debit/Credit Card. You can choose to make a regular gift or single gift by www.justgiving.com/universityofbolton/donate|| or fill in and return the
DirectDebitForm| You can make your gift monthly, quarterly or annually.
A Gift Aid declaration can be made either in writing or orally and may cover donations made since 5 April 2003 and all future donations. If you do not pay tax, you should not use Gift Aid.
How Gift Aid works
For every £1 donated using Gift Aid the university can claim an additional 25p from HM Revenue and Customs.
Who can donate through Gift Aid?
A donor can use Gift Aid if the amount of tax they have paid in the tax year of the donation is sufficient to cover the amount of tax the charity will reclaim against the donation. The tax paid by the donor may be Income Tax, Capital Gains Tax or tax credits on UK company dividends. Tax years start on 6 April and run until 5 April the following year.
Higher rate taxpayers
A higher rate taxpayer who makes donations through Gift Aid can claim back the difference between the higher rate of tax at 40 per cent and the basic rate of tax at 20 per cent on the total value to the charity/CASC of their donation (the 'gross donation'). The donor may choose to give some or all of this difference to charity.
Donors who complete a Self Assessment tax return will have an option to claim back the higher rate element of the tax relief on any donations made to charity. Donors who do not complete a Self Assessment tax return can call their tax office and have the higher rate relief reflected in their PAYE tax code.
Example
John is a higher rate taxpayer and donates £100 to charity. As he pays regular Income Tax on his earnings, the basic rate of tax on his donation has already been covered by his tax payments and the charity claims back the basic rate tax of 20 per cent from HMRC. So the charity is able to make a repayment claim of £25 (£100/4) As a higher rate taxpayer, John can claim the difference between the higher rate of tax at 40 per cent and the basic rate of tax at 20 per cent on the total value of his donation, so he can claim 20 per cent of £125, a total of £25.
SA Donate
SA Donate is a scheme for donors who complete Self Assessment tax returns and it enables donors to gift any repayment of tax that they are entitled to direct to charity. They can also use Gift Aid for this type of donation.