Make Your Donation Go Further with Gift Aid
As a registered CASC, LLTSC can claim an additional 25p for every £1 you donate through the UK Government’s Gift Aid scheme. This applies as long as you are a UK taxpayer, have paid at least the basic rate of tax, and the donation is made from your own funds. In simple terms, Gift Aid increases the value of your donation by 25% at no extra cost to you.
Additional Tax Relief for Higher-Rate Taxpayers
If you pay more than the basic rate of income tax, you may also claim additional tax relief on your donation. The table below shows how much extra a donor can claim back on a £100 gift-aided donation (the charity has already reclaimed basic-rate relief):
| Tax Band | England, Wales & Northern Ireland |
|---|---|
| Intermediate rate (21%) | N/A |
| Higher rate (40% or 42%) | £25 |
| Additional/advanced rate (45%) | £31.25 |
| Top rate (48%) | N/A |
This additional relief represents the difference between the basic rate already reclaimed by the charity and the higher rate of tax you pay.
Boost Your Donation with ‘Pre-Donating’
Once you have claimed your additional tax relief, you can decide how to use it. Many supporters choose to “pre-donate” this amount, allowing their charity to benefit even further.
Example:
If you are a 40% higher-rate taxpayer and donate £100 with Gift Aid:
- The charity receives £125.
- You can claim £25 in tax relief.
- Your net donation cost is £75.
Alternatively, you could donate £133.33 upfront:
- The charity claims £33.33 in Gift Aid, receiving a total of £166.66.
- You can still claim £33.33 in tax relief.
- Your net cost remains £100, but the charity receives significantly more support.
How to Claim Higher-Rate Tax Relief
If you complete a Self Assessment tax return:
Enter your total gift-aided donations in the “Charitable Giving” section. Keep records of all gift-aided donations to ensure accurate reporting.
If you do not complete a Self Assessment:
Contact HMRC on 0300 200 3300 to report your gift-aided donations. HMRC can adjust your tax code (if you are employed or receive a private pension) so that you pay less tax throughout the year. If neither applies, HMRC may issue you a tax refund directly.
Contact the Office if you have any questions 01926 425845 or office@lltsc.co.uk.
