Gift Aid: How Does it Work?

Gift Aid explained

The Gift Aid scheme simply means if you pay UK tax, even if it’s just on your pension or part-time job, whenever you make a donation to Veganuary, we can claim back some of the tax you’ve already paid.

How does it work?

  • For every £1 you give Veganuary, we can claim back 25p in tax.
  • It doesn’t cost you anything – all you have to do is fill in a short, simple form giving us permission to reclaim this tax.
  • It can apply to any gifts you have made to Veganuary in this tax year, the four years prior to this tax year and those you make in the future.

How do I sign up for Gift Aid?

You can download our Gift Aid declaration form, complete it electronically and then email it back to us.

What is Gift Aid?

Gift Aid is a government scheme that allows charities to reclaim the tax that you have already paid on your donations through income tax or capital gains tax. 

Most donations from individuals made in the last four years are eligible for the scheme, unless made using an alternative tax effective scheme such as Payroll Giving, or via the Charities Aid Foundation or a similar agency. Regular donations such as standing orders and direct debits can be included in Gift Aid claims made by charities.

Please remember to let us know of any changes to your tax status, including changes to your name and address. You can contact us at any time by emailing us.

Why do I need to make a declaration?

The declaration gives Veganuary authority to reclaim tax from Inland Revenue on your donation. By making the declaration, you are confirming you understand this.

Do I qualify for Gift Aid?

Gift Aid can apply to donations of any amount made by an individual, large or small – it all adds up! You can Gift Aid your cash, cheque, postal order, direct debit and standing order donations.

To qualify for Gift Aid, you need to be a UK taxpayer and to have paid income tax or capital gains tax that is at least equal to the amount of tax that all the charities and Community Amateur Sports clubs you give to will claim on your gift aid donations in the year that they are received. Please note that other taxes such as Council Tax and VAT do not count for Gift Aid purposes.

Tax is claimed at the basic rate of 20% (which is 25% on the net value of your donation). This means that under Gift Aid for every £1 you give, the Veganuary can reclaim at least an additional 25p from HM Revenue & Customs.

If you are unsure whether you are eligible for donating by Gift Aid, or simply want more information, contact the HM Revenue & Customs directly by calling their Gift Aid helpline on 0151 472 6038 or visiting the HMRC website.

How do I know if I am a UK taxpayer?

You are a taxpayer if income tax is deducted from your wages or salary, or if you pay tax through a self-assessment each year in the UK. If you do not pay income tax, you may pay tax on any UK savings accounts which should be shown on your statements.

Alternatively you may have paid capital gains tax or be paying tax on a private pension in the UK. All these types of tax will qualify you for the Gift Aid scheme providing you meet the terms above.  Note that any VAT and Council Tax do not apply.

Do I need to make a separate Gift Aid declaration for each tax year?

No, you only need to make a declaration once. We will keep this declaration as your enduring permission to claim gift aid tax relief on all donations you have made in the previous four years, the current year and any donations you might make to us in the future.

If you have not paid enough tax to cover in the past, or your tax status changes in the future, then please do let us know, otherwise we will keep on claiming and this could result in us receiving tax relief we are not entitled to, which could also have implications for you. You can contact us at any time by emailing us.

What if I pay a higher rate of tax?

If you are a higher rate taxpayer we are still only able to claim the basic rate of tax on your donation. However, you are able to reclaim the difference between the amount we reclaim and the 40% you pay yourself through your annual tax return.

What if I stop paying tax? Can I withdraw the declaration?

You can cancel the declaration at any time by emailing your full name and address, including your postcode.

I am a pensioner, do my donations qualify?

Income from state pensions alone is unlikely to qualify as you would need to earn above the personal allowance threshold to pay income tax. If this is your only source of income, we would always advise that you check with your tax office before completing a declaration.

Is there any extra paperwork for me to complete?

No. We reclaim the tax directly from HM Revenue & Customs, you just need to tick the box on the form to confirm you are a UK taxpayer. However, you may wish to keep a record of donations you make to charity in each tax year, to ensure that you continue to pay enough tax to cover the payments you make under Gift Aid.

Can I use Charities Aid Foundation vouchers to make Gift Aid donations?

Veganuary cannot reclaim tax on donations made through Charities Aid Foundation as the tax has already been reclaimed for you. However, we would be grateful if you could complete and return the declaration form anyway so that any donations you have not made from your Charities Aid Foundation account or might make directly to us can be tax-effective as well.

What if I have agreed to Gift Aid to another charity?

You can support as many UK charities as you like through Gift Aid. All you need to do is to return a declaration to each charity that you support and ensure that you are paying enough tax during the year to cover your total annual donations.

No, you do not need to make a new declaration but you do need to let us know your new address. Please email us.

No, you do not need to make a new declaration but you do need to let us know of your new name so we can make a record of it in our database. Please email us.

Can I withdraw a declaration on a particular donation?

If, for any reason, you decide that your donation should not be included in Gift Aid – for example, if you think that you will not be paying enough tax to cover the tax reclaimed by us – then simply email us and ask for the declaration to be withdrawn.

Thinking of trying vegan?

Veganuary inspires and supports people all over the world to try vegan for January and beyond. Millions of people have already taken part. Will you join them?