How does Gift Aid work?
Gift Aid is one of the easiest ways to make your donation tax effective. The charity you are supporting reclaims the basic rate tax from the Inland Revenue. There is no extra cost to you and the process is simple – all you have to do is make a Gift Aid declaration.
What is a Gift Aid declaration?
It is simply a statement by an individual taxpayer that they want a charity to get back from the Inland Revenue the tax paid on their donation. This is a great way to add 28 per cent to the value of your gift to BAWA without it costing you a penny more!
Gift Aid - do I qualify?
Providing you pay as much tax as BAWA will be entitled to reclaim on your donations in the same financial year, you are entitled to use Gift Aid. For example, if you wish to Gift Aid donations that total £100 in one year, you will need to have paid at least £28 to the taxman in respect of that tax year.
How do I know if I pay UK income or capital gains tax?
You pay these 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 a 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 instance
If any of these applies to you, please complete and return your declaration so BAWA can reclaim the tax on your donations. NB: Inheritance tax does not count as UK income or capital gains tax.
Why does it work out at 28 pence for every pound given?
Although basic rate tax is currently 22 per cent, the donation for £1 is treated as the net after tax from £1.28 (£1.28 minus 22 per cent is approximately £1). BAWA get back the 28 pence.
What if I don't pay UK tax?
Then, unfortunately, you are not able to make a Gift Aid declaration. If you want us to make a note of this on your records, please let us know by writing to us at:
Fundraising Support & Enquiries
Borders Animal Welfare Centre
Craigsford
Earlston
TD4 6DJ
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, please tick the Gift Aid declaration.
What if I'm a higher rate taxpayer?
BAWA can only directly claim back at the basic rate but please complete and return the declaration anyway.
However, 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.
From April 2004 the self-assessment form covering returns for 2003/04 allows you to nominate a charity to receive any rebate that you are due. The Inland Revenue will pass the repayment directly to the charity. So please consider this simple way to add even more to your gift to BAWA.
For example, if a higher rate taxpayer makes donations totalling £100 over a year, on top of the £28 that BAWA claims back directly, you can reclaim as much as £23 from the taxman.
What if I'm a lower rate taxpayer?
If you pay a lower rate (10 per cent or 20 per cent), BAWA can still claim back 28p for each £1 you donate, provided you pay enough tax to cover the claim in the tax year you make the gift(s).
What does the Gift Aid declaration commit me to?
Absolutely nothing! It just ensures that if you choose to donate to BAWA, we can claim an extra 28 per cent back from the Inland Revenue.
How long does the declaration last for?
To simplify matters for both you and BAWA, the declaration wording normally covers present, future and past donations. We are able to claim on any gifts made since the Gift Aid scheme was revised on 6 April 2000, as long as you are eligible.
Who will have access to this information about me?
Only BAWA and the Inland Revenue. We will not share it with anyone else.
What should I do if my tax status changes or I want to cancel my declaration?
Please notify us in writing at:
Fundraising Support & Enquiries
Borders Animal Welfare Centre
Craigsford
Earlston
TD4 6DJ
| 
