| Gift Aid Declaration Explained | |
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What is 'Gift Aid Declaration'?
It is a declaration in which you authorize a charity to claim back the income tax and/or capital gains tax you have paid to the government. If you are a taxpayer, then you have paid tax on your income. The donation you give to a charity is from your income, so it has had tax paid on it. This declaration authorizes the charity to claim back from the government the tax paid on your donation. Who is eligible? You are eligible to authorize a charity to reclaim the tax on your donations if:
Who receives the tax refund? The charity to whom you give your donation. You must authorize them by signing the Gift Aid Declaration form, or verbally over the telephone or on the internet. Who pays the tax refund? Inland Revenue - from the tax that you paid them. How much is the tax refund? Inland Revenue will give the charity 28p for every £1 that you give as donation. Thus, the charity will get £12.80 if you donate £10 to them. This is 28% of your donation. What if I am a Higher Rate taxpayer? If you pay tax at the Higher Rate, Inland Revenue will give back 40p for every £1 that you give as donation; the charity can claim 28p and you can claim the remaining 12p for yourself. How do I cancel my Gift Aid Declaration? You can cancel your declaration at any time by notifying UK Islamic Mission - it will then not apply to donations you make on or after the date of cancellation or such later date as you specify. If you are not making an online donation now, but would like UK Islamic Mission to reclaim tax on donations you have made since 6 April 2000 or will make in future, you can order a printed Gift Aid Declaration Form by calling us on 020 7387 2157. |