What is Gift Aid?
Gift Aid is a tax incentive that was introduced in 1990 that encourages people to donate to good causes through tax-effective giving.
In simple terms, it means that you can increase the value of your donation, at no cost to you, because we can claim the tax back on your donations. All you have to do is check our "Gift Aid" declaration when you checkout via the SolarAid store. For every £1 you donate, we will receive an extra 25p!
When you make a gift aid declaration with SolarAid you are confirming that you are a UK taxpayer and you understand that if you pay less Income and/or Capital Gains Tax than the amount of Gift Aid claimed on all your donations in the relevant tax year, it is your responsibility to pay any difference.
How does it work?
If you pay UK income tax, and you’re making a donation – it’s simple. Just select the checkbox next to our short declaration at checkout. This confirms that you are a UK taxpayer.
UK residents can pay tax in many ways. To qualify for Gift Aid you must either:
- Pay tax from your salary before you receive your wages
- Have to fill in a self-assessment tax return form each year
- Have taxable savings, maybe a pension plan or income from investments
- Have had to pay capital gains tax recently
- You must pay at least the same amount of tax as charities will reclaim in Gift Aid in any tax year.
Can I claim if I am not a UK taxpayer?
Unfortunately, you must be a UK taxpayer to be eligible for Gift Aid.
Do I have to complete a Gift Aid declaration form?
At the moment, every charity that you want to donate to, must show proof of a Gift Aid declaration in order to claim on your donation. This means you must submit a Gift Aid declaration for SolarAid, even if you have declared with another charity previously.
Can you claim on my previous donations?
Yes! Subject to your declaration, we can include all the donations you have made to SolarAid in the last four years. If you would like to submit a multi-donation Gift Aid declaration, please contact us for support.
What if I am a higher-rate tax payer?
If you pay tax at the higher rate of 40 percent, we still benefit from your Gift Aid! However, you may also claim back the difference between the higher rate of tax at 40 percent and the basic rate of tax at 20 percent on the total value of your donation (the ‘gross donation’). This can be claimed back on a Self Assessment tax return which is detail on the HMRC website.
Where can I find out more about Gift Aid?
For more information, please visit the HMRC Gift Aid pages.
If you are unsure if you pay enough tax to allow us to claim Gift Aid on your donations, or want to find out more about eligibility to claim Gift Aid, please visit the HMRC website, or contact your local tax office.
What if I no longer pay tax or I have moved?
If your circumstances change and you no longer pay enough income or capital gains tax to cover the amount claimed by SolarAid you can cancel your declaration by getting in touch. Please also contact us if you've moved address.