Q: What is Gift Aid?
A: Gift Aid increases the value of donations to Roundabout by allowing us to reclaim basic rate tax on your gift. If you pay higher rate tax you can claim extra relief on your donations. If you claim age-related allowances or tax credits, Gift Aid donations can sometimes increase your entitlement.
Q: How does Gift Aid work?
A: 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. Roundabout 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.
Q: How does Roundabout benefit?
A: Basic rate tax is 20 per cent, so this means that if you give £10 using Gift Aid, it’s worth £12.50 to Roundabout.
Q: What will Gift Aid cost me?
A: Gift Aid will cost you no more than your original donation.
Q: How much tax do I need to have paid?
A: You can use Gift Aid if the amount of Income Tax and/or Capital Gains Tax you’ve paid in the tax year in which you make your donation is at least equal to the amount of basic rate tax Roundabout is reclaiming on your gift. If you make a number of Gift Aid donations, you will need to consider the tax you’ve paid on each donation on an accumulative basis.
Q: What if I am no longer a U.K. taxpayer?
A: You should notify us at Roundabout in writing so that we do not make any further Gift Aid claims in relation to your donations. If you change your address please notify Roundabout in writing.
Q: Do I need to advise HMRC?
A: It’s important to keep a record of the total amount of your Gift Aid donations for each tax year.
You will need to let HMRC know about your Gift Aid donations if:
- you claim age-related Personal Allowance, Married Couple’s Allowance or tax credits
- you pay higher rate tax
- you want to carry back a Gift Aid donation
Q: What happens if I donate furniture or other household items to Roundabout?
A: In order to make a Gift Aid donation of cash or furniture to Roundabout, you will need to make a Gift Aid declaration. Roundabout will ask you to complete a simple form. One form can cover every gift made to Roundabout for whatever period you choose, and can cover gifts you have already made and/or gifts you may make in the future.
In the case of furniture donations, we will act as your agent to sell some or all of the items you have donated. From time to time we will advise you in writing of the amount the sales have achieved. You will have 21 days from the date of the letter to advise us in writing should you change your mind and claim back the money from the sales. If you do this Roundabout will take a commission which is subject to V.A.T. at a current rate of 20%.
Q: Where can I get more information about Gift Aid?
A: Further information can be obtained at http://www.hmrc.gov.uk/individuals/giving/gift-aid.htm