Gift Aid Explained

Who can Gift Aid their donations?

A donor can use Gift Aid if the amount of tax they have paid in the tax year of the donation is sufficient to cover the amount of tax the charity will reclaim against the donation.
The tax paid by the donor may be Income Tax, Capital Gains Tax or tax credits on UK company dividends. Tax years start on the 6th April and run until 5th April the following year.

UK residents can pay tax in many ways. Either you:

• 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 the Bhopal Medical Appeal will reclaim in Gift Aid in any tax year. For example, if you make a donation of £10, the Bhopal Medical Appeal will reclaim £2.50 in tax from HMRC so you must have paid £2.50 in tax during the tax year.

What do I need to do?
All you need to do is make a simple Gift Aid declaration including your full name and full residential address including postcode. This will cover all donations that you have made to the Bhopal Medical Appeal in the last four years and any that you choose to make in the future.
You can download a Gift Aid declaration form here

If you are setting up a direct debit or making a donation online or by telephone, a gift aid option will be provided.

How does it work?
Gift Aid works by allowing charities to reclaim tax on a donations ‘gross’ equivalent (its value before tax was deducted) at the basic rate. This is 20 per cent from 6th April 2008. In practice this means that for every pound donated to the Bhopal Medical Appeal using Gift Aid we can claim an additional 25 pence from HMRC.

Higher rate taxpayers
Whether you are paying tax at the higher rate of 40 percent, or at the lower rate of 10 percent, the Bhopal Medical Appeal still benefits from an extra 25 pence for every pound given.
A higher rate taxpayer who makes donations to the Bhopal Medical Appeal through Gift Aid can 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 their donation (the ‘gross donation’).
Donors who complete a Self Assessment tax return will have the option to gift back the higher rate element of the tax relief to the Bhopal Medical Appeal. Simply fill in our Charity Code: 1117526 in box 19a of the Full SA tax return form or section 12 on the Short SA tax return.
Donors who do not complete a Self Assessment tax return can call their tax office and have the higher rate relief reflected in their PAYE tax code.

Read more about Self Assessment Donations on the HMRC website

Non taxpayers
If you do not pay tax, you should not use Gift Aid.

What if I no longer pay tax or have moved?
If your circumstances change and you no longer pay enough income or capital gains tax to cover the amount claimed by the Bhopal Medical Appeal you can cancel your declaration by contacting us at the Bhopal Medical Appeal.
Your declaration will then not apply to donations you make on or after the date of cancellation or such later date as you specify.
Please also contact us if you have moved address.