Tsunami: Gift Aid can be arranged after donation

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The Inland Revenue has pointed out that a Gift Aid tax declaration can be made after a gift has been made to a charity raising money for victims of the Indian Ocean tsunami disaster, but said it cannot apply the tax relief in cases where no declaration is made.

The Times reported today that charities are missing millions of pounds in tax relief on donations because many donors are omitting to tick the box for Gift Aid when they give to the various appeals.

The paper quoted the British Red Cross as saying that half of donors had not ticked the Gift Aid box on their donations. "We are missing out on much needed income," a spokesman said.

However, the Revenue has pointed out that Gift Aid can apply retrospectively. A spokesman has told TaxZone that this was something "easily arranged" between do...

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06th Jan 2005 12:35

Gift Aid for Limited Companies
The notes on Gift Aid for individuals are very useful, but I'd like to make a donation from my (limited) company. Is Gift Aid the most tax efficient (for the company and the charity) way, and if so are there any things I should be aware of in making and recording the donation? And if not, what would be a better way to donate?

Many thanks

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05th Jan 2005 15:44

'Maximise the millions'
The Charity Commission has published new guidelines today, 5 January, aimed primarily at people collecting to help disaster victims. They include the following advice on Gift Aid.

"Remember - GiftAid can save lives! For every £1 given by a UK taxpayer, the charity can claim an extra 28p in GiftAid, at no extra cost to the donor. When you consider how many millions have been given, that's a substantial extra amount towards the aid effort. Encourage people to GiftAid their donations by filling in the simple form here.

"This asks you to confirm you are a UK taxpayer and contains very simple questions about your name, address and amount of donation, and asks you to declare that you want it treated as GiftAid.

"If you are arranging a local collection, please think about printing off some of these forms and asking donors to fill them in. When you have banked the donations from a local collection, send off all the GiftAid forms to the charity, who will be able to reclaim the tax on them. It may be helpful to include the bank/building society receipt to prove that those amounts have been given.

"If you are donating over the counter to a charity such as the Disasters Emergency Committee, most banks have in place a system which will enable you to take advantage of Gift Aid when making a donation. Building Societies should also be aware of the scheme. Please ask if in doubt."

Andrew Goodall: [email protected]

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