People giving to charity are being encouraged by the government to declare Gift Aid on their donations, and boost the money that reaches their charity of choice.
The call comes after research from HM Revenue & Customs (HMRC) showed that a third of eligible donations made to many of the UK’s 200,000 charities did not add Gift Aid when they could have done. This means that charities are losing out on extra funding worth nearly £600 million a year.
Gift Aid allows charities and community amateur sports clubs (CASC) to claim an extra 25p for every £1 donated. To add Gift Aid to a donation, you must have paid income or capital gains tax that year worth at least the value of the Gift Aid being added and give the charity permission to claim it. Gift Aid costs no extra to add on to your donation.
HMRC is continuing to work closely with charities to ensure they get the most out of Gift Aid, including making sure their donors understand the rules, and they fully benefit from the support it gives.
The department has also written to 50,000 charities to promote the Gift Aid Small Donations Scheme, introduced in 2013, to explain how to claim a 25 percent top-up on cash donations. The scheme does not require a declaration to be made for donations worth up to £20, making it simpler for charities to get extra support through Gift Aid.
|RATE THIS ARTICLE|
THIS WEEK'S TOP STORIES
PAM (Private Asset Managers) and its sister website PAMonline combine to provide "...the best guide available to the leading firms in private client fund management" (FINANCIAL TIMES). PAM compares managers on a level playing field by key data such as fees and charges, minimum investment thresholds and so on.