15 January 2024 , 12:54
435
0
Charities are missing out on millions because donors forget to tick the gift aid box, says the Charities Aid Foundation (CAF).
Last year, only about 55% of donors claimed gift aid when they gave money to charity. The gift aid scheme allows registered charities to reclaim income tax on donations made by UK taxpayers, this effectively boosts the amount of the donation.
For basic rate taxpayers, their donations could be increased by 25%, so a £10 donation becomes £12.50 for the charity. Higher rate taxpayers may also claim back the difference between their tax rate and the basic rate on their donations as personal tax relief when they complete self-assessment forms.
The last date for online self-assessment returns is coming soon on January 31. Mark Greer, who is the managing director for giving and impact services at CAF, said: "Charities miss out on millions every year from generous donors who forget to tick the gift aid box."
He said that with the rising cost of living, there are easy ways to ensure your chosen charity gets the most from your donation. He added: "If you haven't already, make a gift aid declaration to the charity. If you complete a self-assessment and are a higher rate taxpayer, you may also be entitled to personal tax relief and you can also check whether you can claim for donations in previous years."
Baroness Mone's £20m London home owned by offshore firms linked to tax avoidance
This information comes from a YouGov survey involving more than 6,300 donors for the CAF that took place early last year.
* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]