Gift aid is known as a tax relief which the government gives. This tax relief gives an individual 25p for each donated £1 to community amateur sports club (CASCs) or charity.
The Gift Aid project allows CASCs and charities to claim from HM Revenue and Customs (HMRC, the primary rate of tax which their donors paid. By utilizing gift aid, the value of your received donations increases by 25%, and that means extra funds go to your charitable causes which you care about, without an additional cost.
The HM Revenue and Customs reported that £1.26 billion was claimed by charities in Gift Aid in 2025/26, even though, individuals declared £5.05 billion Gift Aid. Below we explain what to know in order not to miss out on extra valuable revenue for your charitable cause.
Is Gift Aid For Individuals?
Unfortunately, no. Only charities or CASC can claim Gift Aid on monetary donations made by you, and if you have paid the Uk Capital gains and or Income Tax during the Tax Season. Your paid tax in that tax season or year must be equal to the Gift Aid value which the CASC or charity will claim on your donations to them.
If you cease paying adequate tax, it is crucial to notify the charities whom you’re donating to. If you ignore or forget to do this, and you went ahead and paid lesser tax than the amount of Gift Aid your charities are claiming, you’ll be mandated to pay back any difference to HMRC.
It is noteworthy to understand that donations from a company’s or other peoples’ money, including funds raised through fundraising, aren’t eligible for Gift Aid, and you mustn’t request that a charity claim Gift Aid on such funds.
Key Facts on Claiming Gift Aid If You’re a Charity Or CASC
Below are vital facts which you need to know if you’re a CASC or a charity about claiming back Gift Aid on your donations;
- It is required that your donors complete the Gift Aid declaration form.
- Your cause can claim if you’re already identified as CASC or charity by HMRC.
- If Identified, you can claim for HM Revenue and Customs online and receive the payment within five weeks.
For more information on Gift Aid, you can visit this donation website.
Gift Aid: How Does Work?
For a CASC or a charity to claim gift aid on donations by their donors, the donors will need to complete a Gift Card Declaration. This declaration confirms that your donor is a UK taxpayer and that Gift Aid might be claimed on his or her donation.
For Donors With Higher Tax Payer Rate
If your donor pays tax above the standard rate, he can claim the difference between the basic rate of his donations and his tax rate. Scottish taxpayers also have this advantage; they can either ask HMRC to amend their tax code or claim the difference via the individuals’ Self Assessment tax return.