Gift Aid allows charities to increase the value of financial gifts from UK taxpayers by claiming back the basic tax rate paid by the donor. It can be immensely beneficial to charities, with £1 billion reclaimed from HM Revenue and Customs (HMRC) in 2009/10 alone.
Gift Aid only applies to cash donations, although many larger charities have systems in place that eventually allow them to reclaim Gift Aid on goods donated to be sold in their shops.
By law, your charity must keep an auditable record of all Gift Aid declarations, along with confirmation that you have advised the donor that they must be suffering at least as much UK tax for the tax year in which they donate as the amount your organisation will reclaim. Records must also be kept of any Gift Aid cancellations and any benefits provided by to the donor by your charity.
At Milsted Langdon, we understand that this can be a daunting process, particularly for smaller charities with fewer resources.
Our experienced charities team can ensure your organisation claims back its full Gift Aid entitlement and advise you on ways to make your fund-raising more tax effective.
We can also ensure you comply with all necessary regulations and keep you up to date on the latest developments regarding Gift Aid. We are experts in helping charities operate as tax efficiently as possible, ensuring more money goes to assisting the beneficiaries of the charity, rather than in the taxman’s pocket.
To find out how we can help you, please contact us.