FAQ on Gift Aid

Are you a UK Tax Payer? Yes - read on.

You can increase the value of your gifts to St Paul's and St Timothy's parish at no cost to yourself, by allowing the trustees to claim the tax back on your donations. Simply GIFT-AID your donations.

I am not a UK Tax Payer. What happens?

If you do not pay tax to the UK Government, you should not gift-aid your donation or ask anyone else to gift-aid your donation. You can of course encourage UK Tax payers to send their own donations and they can gift-aid those.

Can I have more details on what Gift-Aid is, please?

The Gift Aid scheme is for gifts of money by individuals who pay UK tax. Gift Aid donations are regarded as having basic rate tax deducted by the donor. The charity take your donation - which is money you’ve already paid tax on - and reclaim the basic rate tax from HM Revenue & Customs (HMRC) on its ‘gross’ equivalent - the amount before basic rate tax was deducted.

This means that, if you give £10 using Gift Aid, it’s worth £12.50 to the charity.

[Here is an explanation. Basic rate tax is 20 per cent. The 'gross' equivalent of £10 is £12-50 so charity claims 20% of £12-50 which is £2-50. So charity gets (donation + claimed tax) which is worth £12-50]

How do I gift-aid?

Please go to the Gift-Aid form page. 

On the form, you can choose one or more options:

  • a single donation made today
  • all future donations
  • all donations made in the past four years

to be gift-aided. 

For your donations to be gift-aided, you must use offertory envelopes OR set up a standing order. Ask the sacristan if you want a new set of offertory envelopes. To set up a standing order, go to the Standing Order Form page.

How do I check whether I have paid enough tax?

Most people know whether they are paying tax or not but are not sure how to calculate whether they have paid enough to cover the donation.

To work this out, divide the donation value by four. For example, if you give £100 in a particular tax year you will need to have paid £25 tax over that period. See the HMRC website for more details.

What happens if I no longer pay enough tax to cover my donation?

If your circumstances change and you no longer pay enough tax in the tax year to cover all your donations you have made in that year, then you should inform the parish in writing.

Does it matter how I pay tax?

You don’t necessarily have to be working to be paying tax. Apart from tax on income from a job or self-employment, the tax you've paid could include:

  • tax deducted at source from savings interest
  • tax on State Pension and/or other pensions
  • tax on investment or rental income
  • Capital Gains Tax on gains

But only UK tax counts.

I am paying higher rate tax. Does this make a difference?

If you pay higher rate tax, you can claim the difference between the higher rate of tax 40 and/or 50 per cent and the basic rate of tax 20 per cent on the total ‘gross’ value of your donation to the charity.

For example, if you donate £100, the total value of your donation to the charity is £125 - so you can claim back:

  • £25 - if you pay tax at 40 per cent (£125 x 20%)

You can make this claim on your Self Assessment tax return, if you were sent one. For more information see the relevant page on the HMRC website.

I need more information. Where can I find it please?

Go to the HMRC website where you will find factsheets on gift-aid.