Gift Aid
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What is Gift Aid?
Gift Aid is a simple way for our Scout Group to increase the value of your donations and subscriptions to the Group if you are a UK taxpayer.
How much is it worth to us?
By asking donors permission to reclaim the tax they have paid on their donation, we can increase the value of that donation by one quarter, i.e. for every £1.00 paid as a subscription we can claim back 25p making it worth £1.25 to the Group.
How does Gift Aid work?
When a UK taxpayer gives a gift of money to a charity, they have already paid tax on that money. Because charities are generally exempt from tax, they can claim an amount from HM Revenue and Customs (HMRC) equal to the tax paid on that money by the donor. This repayment is known as Gift Aid.
The Gift Aid Declaration
A donor must have paid enough tax on their income before a charity can claim it. It is important that HMRC can verify the connection between our tax repayment claim and the tax paid by the donor. In other words, every claim must be supported by a Gift Aid Declaration that shows who paid the tax in the first place.
Some Frequently asked questions:
Is the Gift Aid declaration complicated?
No, it is very simple and only requires that you declare that you want your subscriptions to be treated as Gift Aid payments.
What will I have to do in the future?
Nothing, once you have completed the declaration this covers your child(ren) until they leave the Group. You need only notify the Group if you change name, address or are no longer able to confirm the details on the declaration.
Do I have to complete a separate declaration for each of my children in the Group?
No. One declaration covers all payments you make in respect of their subscriptions.
Will I have to reveal any personal tax information?
No. All that is needed is very basic information including your name, address and confirmation that you want your Subscriptions to be treated as Gift Aid.
What happens if my child changes Section?
Nothing, as the Gift Aid declaration is not in respect to a specific sum but merely the subscription, however much that will be.
What happens if I stop paying tax?
If you stop paying tax or have paid insufficient tax to cover the amount the Group will be claiming back you should inform the Scout Group and they will not make a claim for your payments.
Will I have to reveal any personal tax information?
No. All that is needed is very basic information including your name, address and confirmation that you want your Subscriptions to be treated as Gift Aid.
If I am a higher rate tax payer can I claim back the extra tax?
Although the Group can only claim back tax at the standard tax rate, higher rate taxpayers can claim the difference back as tax relief on their self-assessment forms.
Will it cost me anything extra?
No, the Group will simply claim back tax that wold otherwise have gone to the Inland Revenue. We can then use this tax to reduce the impact of subscription increases.
What happens if my child leaves the Group?
As there is no legal commitment in a Gift Aid declaration the Group will only claim back the tax on the payments you made before the child left the Group.