What is Gift Aid?
Gift Aid is a scheme run by HM Revenue & Customs (HMRC) to help charities raise money. Charities registered with HMRC can take your donation - money on which you've already paid tax - and reclaim the basic rate tax from HMRC on its 'gross' equivalent, i.e. the amount before basic rate tax was deducted.
Basic rate tax is 20 per cent, so this means that if you give £10 using Gift Aid, it’s worth £12.50 to the charity.
What do I have to do?
It's very simple and will take just a few seconds. When you donate AngelShares to a project on this site, be sure to fill in the declaration form that says that are a UK taxpayer. This doesn’t cost you anything, and we’ll do all the rest.
AngelShares will claim Gift Aid on behalf of your nominated charity and pay it direct to them, less a small handling fee.
All we ask is that if your circumstances change and that you do not pay tax in the future you let us know. Email us at hello@AngelShares.com and we'll be sure to change our records accordingly.
Benefits to higher-rate taxpayers
If you pay higher rate tax, you can claim the difference between the higher rate of tax at 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 × 20%)
- £37.50 - if you pay tax at 50 per cent (£125 × 20%) plus (£125 × 10%)
You can make this claim on your Self Assessment tax return.
What if I am not a UK taxpayer?
Gift Aid is a scheme run by the UK Government, so if you don’t pay taxes here, we can’t claim a refund. Sorry!
What if my donation isn't eligible for Gift Aid?
Don't worry, you can still help! All donations towards projects help enormously and our organisations and individual artists will be just as keen to make your acquaintance.
Either drop us a line at hello@AngelShares.com or look at the very helpful HMRC website page on giving to charities through Gift Aid.