Gift Aid

Gift Aid is a UK Government tax relief scheme that allows charities to claim tax paid on donations.

If you sign up to Gift Aid, the Royal British Legion can reclaim the tax you have paid on your donations, currently for every pound you donate, currently we receive an additional 25p from the Government, without any additional cost to you. This means we will be able to claim £5.00 on a £20.00 donation. The good news is that Gift Aid can also be applied on donations you have made in the last four years.

You can Gift Aid your charitable donations to as many Charities as you like, as long as you have paid enough Income or Capital Gains Tax to cover all the Gift Aid that will be claimed. 

You must be a UK taxpayer to join the scheme. This means one of the following applies to you:

• income tax is deducted from your salary before you receive it

• you pay tax after submitting a self-assessment form each year

• you have a taxable pension plan, taxable savings, or investment income

• you have paid capital gains tax (e.g., on the sale of a property or shares)

You must have paid an amount of tax at least equal to the amount the Royal British Legion will claim on your donations we would claim in Gift Aid in a tax year, e.g., if you donate £100.00, we will claim £25.00 in Gift Aid, you need to have paid at least £25.00 in Income or Capital Gain Tax.

You might still pay tax on a private pension scheme, savings account, capital gains tax if you sell property or shares. We recommend that you check with your pension provider. The amount of tax you have paid needs to be equal to or more than the amount we will be reclaiming in Gift Aid each tax year.  

 

No, Gift Aid is taken from tax you have already paid so there is no charge to you. It does not affect your tax status either.

Simply complete a Gift Aid Declaration form or tick the Gift Aid Option when you donate online or become a member. You can also speak to our Supporter Care team by calling 0345 845 1945, Monday to Friday, 9am to 5pm.

We’ve also got a downloadable Gift Aid Declaration that you can fill in electronically and email to us at [email protected]

You must pay UK taxes to join the scheme, and the amount of taxes you pay in a year must be the same or higher than what the charity or charities reclaim in that year. If you pay less, it is your responsibility to pay back the difference. Tell us when you stop paying taxes or no longer pay enough taxes, and we will stop claiming on your donations straight away. 

Example 1: Jane works part time, and her income tax is £300 per year. She supports two charities and has provided her Gift Aid declarations to both charities. This year she donated £100, and the charities claimed £25 in Gift Aid.  

The amount of tax Jane paid is higher than the amount claimed in Gift Aid, so there is no issue.

 

Charities can only claim Gift Aid at the basic rate. If you are a higher rate taxpayer, you can claim the difference between the higher tax rate you are paying and the basic tax rate in your Self-Assessment. HMRC will refund you the difference, which you can donate as well.

Charities cannot claim any donation:

• from a non-UK taxpayer.

• from residents of the Channel Island or Isle of Man.

• made on behalf of someone else or a group of people.

• made on behalf of a company.

• to a family member or friend participating in an event where the charity is contributing to their costs.

• made in return for goods, rights, or services.

• money raised from collections e.g., funeral collections.

• money raised from a sale of goods e.g., cake sale, car wash or sale of raffle tickets.

Gift Aid is tax relief based on your personal taxed income. If you donate on behalf of either a company or another person, this is not from your personal taxed income; charities are not eligible to claim Gift Aid on these donations.

Yes, you can, every donation makes a difference to our work. Please note that if you make an anonymous donation the charity will not be able to claim Gift Aid, as they need your name and home address when submitting the Gift Aid claim so HMRC can identify you as a taxpayer. 

If you are concerned about sharing your personal details, please have a look at our privacy promise and how your data is managed.

No, Gift Aid cannot be claimed on a Company donation; however, the company will be able to claim tax relief themselves on any charitable donations they make.

No, as the declaration you complete is an enduring declaration which will cover any future donations you may make.

No, Gift Aid cannot be applied to CAF or other Charitable vouchers as the Gift Aid has already been added to your account held with them.

Yes, please contact all the charities that you have a Gift Aid Declaration with to cancel your declaration(s) as you will no longer be eligible to Gift Aid your donations as you do not pay Income or Capital Gains Tax. Please remember, if you have not paid enough Income or Capital Gains Tax, HMRC will contact you to pay back the difference.

Please telephone our Supporter Care team 0345 845 1945, Monday to Friday, 9am to 5pm, or emailing them at [email protected] to advise them of any changes to your tax status, please don’t forget to include your name and address when you email us.

Yes, you can ask your supporters to agree to Gift Aid their donations they make to you either by donating through an online platform like Just Giving or completing a paper sponsorship form, which will be included in your welcome pack.

When you registered for an event, you will be invited to set up a fundraising page on Just Giving.

You will need to invite your friends to Gift Aid each event you participate in.

Once this has been set up, please invite your supporters to sponsor you, they will be given the opportunity to Gift Aid.

Please note: - 

• Your supporters can only Gift Aid their own personal money and not money collected from others. 

• Your supporters can include a message of support, this is restricted to their family members only e.g., ‘Good luck from Mum, Dad and Amy.’ 

• Messages like ‘Good luck from all your colleague’ or ‘Good luck from everyone in your team,’ will be removed from the Gift Aid Claim by the online fundraising platform you are using. 

If you are raising funds for an overseas challenge event, e.g., Pedal to Paris or Ypres, Gift Aid can only be claimed on donations received from non-family members. Further information will be provided when you register for the event.

When inviting your supporters to complete the sponsorship form please ask them: - 

• if they are a UK taxpayer. 

• to write clearly and use their home address (a work address is not accepted). 

• to tick (☑) the Gift Aid box.

• donations made from a company. 

• money raised from collections. 

• money raised from a sale of goods e.g., cake sale, car wash or sale of raffle tickets. 

• donations made for an overseas challenge where the sponsor is a close family member to the person doing the challenge, this includes a wife, husband, civil partner, parents, and siblings.

Please remember to send in your completed sponsorship form with your payment once you have completed your event.