If you or your sponsors would like to add Gift Aid to your donations, please read this explanation of how it works so that you can ensure we have any essential information.

How Gift Aid works…

The Gift Aid scheme is for gifts of money by individuals who pay UK tax. Gift Aid increases the value of donations to us by allowing us to reclaim basic rate tax on gifts.

We take the donation – which is money tax has already been paid on – and reclaim the basic rate tax from HM Revenue & Customs (HMRC). Basic rate tax is 20 per cent, so this means that if you give £10 using Gift Aid, it’s worth £12.50 to the charity.

Using Gift Aid, the proceeds of the 2012 Big Fun Walk were increased by over £17,000.

Have you paid enough tax to use Gift Aid?

You can use Gift Aid if the amount of Income Tax and/or Capital Gains Tax you’ve paid for the tax year in which you make your donation is at least equal to the amount of basic rate tax the charity or CASC and any other charities or CASCs you donate to will reclaim on your gift. A tax year runs from 6 April one year to 5 April the next. If you make a number of Gift Aid donations, you will need to consider the tax you’ve paid on each donation on an accumulative basis. If you don’t pay enough tax you will need to pay any shortfall in tax to HMRC.

You don’t necessarily have to be working to be paying tax. Apart from tax on income from a job or self-employment, the tax you’ve paid could include:

  • tax deducted at source from savings interest
  • tax on State Pension and/or other pensions
  • tax on investment or rental income (including tax credits on UK dividends)
  • Capital Gains Tax on gains
  • Other taxes such as VAT and Council tax do not qualify, nor does any non-UK tax.

What we need to know…

For us to claim Gift Aid on a donation we need to know the sponsor’s first and last name and their home address, and they must tick the Gift Aid box on the sponsorship form.

If they wish to keep their home address confidential, they must show at least their first and last name, their house name or number and their full postcode. Without this information we cannot claim the extra money they intend us to have.

Why we need to know…

From time to time HMRC may carry out an audit of our Gift Aid claims. This is to check that we have been doing our part of the process properly and is not a check on donors. We need to be able to show that each Gift Aided donation came from someone whom we reasonably believed was a real person living at a real address and that we have not just made up names and addresses in order to claim additional funding.

It therefore follows that if you make a Gift Aid donation but don’t provide the information we ask for, we cannot claim the extra money that you wanted us to have. That is why we ask you to read and understand how Gift Aid giving works – so that you will be confident that you can give us maximum support.

(Please note that different rules apply to donations paid by charity cheques or vouchers and to donations made by businesses or charitable trusts, and therefore those kinds of donations cannot be Gift Aided.)

Thank you so much for taking the time and trouble to read this explanation, and for helping to ensure that with your help the Big Fun Walk will go from strength to strength.