What is Gift Aid?
Gift Aid is a simple way to make your donations go further at no extra cost to you or London’s Air Ambulance Charity. It enables us to reclaim the basic rate of tax from HMRC and all you have to do is make a Gift Aid declaration.
What is a Gift Aid declaration?
It’s a statement by an individual taxpayer that they want a charity to claim from HMRC the tax paid on their donation. This simple process will add 25 per cent to the value of your gift to London’s Air Ambulance Charity without costing you a single penny more. For example, with Gift Aid a £10 donation will now be worth £12.50 and for every £50 gift, we will actually receive £62.50.
Claiming gift aid can significantly increase the income of a charity, at no extra cost to the supporter, meaning that more life changing money can go towards the cause.
What does completing a Gift Aid declaration mean?
To qualify for Gift Aid on every £1 you donate to London’s Air Ambulance Charity in any financial year (from 6 April to 5 April the following year), you must be a UK taxpayer and have paid sufficient Income or Capital Gains Tax in the same financial year. For example, if you donate £100 then you must have paid £25 in Income or Capital Gains Tax in the same financial year for your entire £100 donation to qualify for Gift Aid.
This could be tax paid on your wages, savings, investments or pension. However, Inheritance Tax, Council Tax and VAT do not qualify towards Gift Aid.
If you have made a Gift Aid declaration we ask that you let us know if you cease to pay enough Income Tax and/or Capital Gains Tax to cover the amount we will claim from HMRC on the donations you make.
We also need to know if you change your name or address at any point as well. Contact details can be found at the foot of this page.
How do I know if I pay UK Income or Capital Gains Tax?
You pay Income or Capital Gains taxes if:
- Income Tax is taken from your wages or salary before you receive your pay
- you pay tax after filling in a self-assessment form each year
- you have any taxable savings (in building society, for instance), or a pension plan or investment income
- you have paid any Capital Gains Tax on the sale of a property or some shares, for example.
Please note that Inheritance Tax, Council Tax and VAT do not count as Income or Capital Gains Tax.
Why does it work out at 25 pence for every pound given?
Although the UK basic rate tax is currently 20 per cent, a £1 donation is treated as the net amount after tax has been applied. In other words, the £1 donation you make is technically derived from £1.25 (£1.25 minus 20 per cent tax which is approximately £1). We can reclaim the 25p in tax.
But remember that your £1 donation still only costs you £1 and the Gift Aid we claim does not cost you any additional money.
What if I don’t pay UK Income Tax and/or Capital Gains Tax?
Then, unfortunately, you are not able to make a Gift Aid declaration. We can make a note of this on your record so please do let us know by calling 020 3023 3319 or emailing [email protected] or writing to us at London's Air Ambulance, 5th Floor, 77 Mansell Street, London E1 8AN
What if I’m a pensioner?
You may still pay tax on a private pension plan or a savings account or pay Capital Gains Tax if you sell property or shares. If so, you are eligible to complete a Gift Aid declaration.
What if I’m a higher rate taxpayer?
As a higher rate taxpayer, if you declare your donations on your tax return, you can claim a rebate based on the difference between the higher rate and the basic rate when you fill in your self-assessment form. London’s Air Ambulance Charity can only directly claim back at the basic rate, but please complete and return the declaration so that we can claim 25p on every £1 you donate.
What if I’m a lower rate taxpayer?
If you pay a lower rate (10 per cent or 20 per cent), London’s Air Ambulance Charity can still claim back 25p for each £1 you donate, provided you pay enough tax to cover the claim in the tax year you make the donation.
What if I make my donations via CAF (Charities Aid Foundation)?
If you normally make donations via CAF, tax has already been reclaimed but please do fill in the form to cover any other donations you may make in the future or have made in the past that aren’t through the CAF scheme.
What if I buy raffle tickets or play the lottery?
HMRC doesn’t treat raffle ticket purchases or playing the lottery as donations, so Gift Aid doesn’t apply to them. But please do submit a declaration to cover any other donations you may make in the future or have made in the past.
Can Gift Aid be applied to events sponsorship?
Yes, as long as those people who donate to your event or activity are individuals and are UK taxpayers as specified above. If you are taking part in an organised event like the London Marathon or organising your own activity like giving up chocolate for a month, it is best to set up an online fundraising page – we recommend our own secure platform which you can access here (https://fundraising.londonsairambulance.org.uk/your-event) but you can also use Just Giving if you would prefer.
If you are using a paper sponsorship form and collecting donations that way, please remember each individual sponsor will need to include their home address and postcode for us to be able to reclaim the tax and send the completed sponsorship form to us so we can claim the Gift Aid.
Does Gift Aid apply to funeral collections or donations from a company or club?
Gift Aid is only applicable to donations or sponsorship from individuals, not businesses, clubs, organisations or groups, as long as those individuals are eligible UK tax payers. Likewise, if you use a collection pot to collect anonymous cash donations at events like quiz nights or at gatherings such as funerals then these would not be eligible for Gift Aid either.
If you are holding a collection at a funeral or remembrance service, we would advise setting up an online donation collection page or directing family and friends to make a safe and secure donation through our website. Donors will then have the opportunity to Gift Aid their donations, as long as they meet the qualifying criteria listed above. For more information on funeral collections or memorial donations please contact [email protected]
Can Gift Aid be claimed on ticket sales?
No, Gift Aid is not eligible on ticket sales for an event. This is because the person attending your event will be getting a benefit in return for their ticket price – i.e. attendance to your event. Gift Aid can only be claimed on personal, voluntary donations by eligible individuals.
How long does the declaration last for?
After you sign up for Gift Aid it normally covers past, present and future donations. We can back-claim four years and we’ll continue to do so until you ask us not to so, please let us know if anything changes.
Who will have access to this information about me?
What should I do if my tax status changes or I want to cancel my declaration?
Please let us know by contacting us in one of the following ways:
Email: [email protected]
Telephone: 020 3023 3319
Write to us at: Supporter Care, London's Air Ambulance, 5th Floor, 77 Mansell Street, London E1 8AN
If you would like more information about Gift Aid please visit the HMRC website https://www.gov.uk/donating-to-charity/gift-aid