If you have dropped donations to your local charity shop , a volunteer may have asked you to sign a gift aid declaration form. What did you say? Yes or no? Did you understand what you were being asked to sign?
It is now increasingly common for charities to ask people to sign this form when donating items. This is because it increases the value of your donated pair of jeans or shoes for the charity.
Gift Aid allows UK charities to claim back the basic rate tax already paid by you on donated goods. This means the charities can claim back from the government on your behalf 25p for every £1 donated. This boosts the value of your donation by a quarter. Yet, it doesn’t cost you anything!
Do I qualify for gift aid?
You must be a UK taxpayer (so non-UK taxpayers are not eligible).
For a charity to claim Gift Aid on your donation, you must have paid UK Income or Capital Gains Tax that financial year.
The tax you pay must be equivalent to the amount of Gift Aid the charity will reclaim on your donation that tax year.
Therefore, if your income is below £11,850 (for April 2018-April 2019), which is the amount you can earn without paying income tax, you won’t be able to claim Gift Aid at all.
Sign up to gift aid if you’re eligible!
So next time you make a charity donation after a decluttering session remember to sign the form if you’re eligible! It means you are doing even more good! You are helping to raise vital extra funds “at no additional cost to you,” (British Heart Foundation).
Are you stuck in your decluttering journey? Do you need some motivation and accountability? Get in touch on email@example.com as I can help!