Stressed by tax?
Get Earnr Pro
Taxionary

Gift Aid

[ɡɪft eɪd]

Term

Summary:

Gift Aid allows charities to claim an additional 25% on top of the original donation. It can also have tax benefits for the donor.

More detail:

Gift Aid is a tax-relief system in the United Kingdom that allows charities to claim an additional 25% on top of Charitable Donations made by UK Taxpayers. Donors must say that their donation should be treated as Gift Aid, and must pay more Income Tax or Capital Gains tax than is being claimed by the charities.

If the individual is a Higher Rate or Additional Rate taxpayer, then they can claim Income Tax relief for the difference between their tax rate and the Basic Rate on the donation. This can be done through a Self Assessment.

Self-employed individuals are also able to claim Gift Aid.

Back to Taxionary

You might also like...

decorative image for a blog

What is IR35 and do I need to worry about it?

There are loads of different tax laws in the United Kingdom. IR35 is very important to freelancers and contractors but can be a little confusing. Here, we explain simply what IR35 is and who it can affect.

Read more
decorative image for a blog

Flat rates for mileage vs actual expenses. What is better?

Self-employed individuals can use two different methods to expense business vehicle costs. Here, we investigate the positive and negatives for both methods and which one might be right for you.

Read more
decorative image for a blog

What is the EIS and how does it work?

If you are looking to invest in small and medium sized businesses, the Enterprise Investment Scheme (EIS) provides lots of tax reliefs for doing so. Here we discuss what it is and how it works.

Read more
Earnr logoDownload earnr