The Gift Aid Trick

Image of The Gift Aid Trick

December 17, 2019

Gift Aid feels like a win-win doesn’t it?

Donating through Gift Aid means that the charity can claim an extra 25p on every £1 you give. It doesn’t cost you anything.

It gets better though if you pay a higher rate of tax. If you pay 40% or more on any portion of your earnings you can claim the difference between the rate you paid and the basic rate on your donation.

Here’s an example…

A £100 donation means that through Gift Aid that charity effectively makes your donation £125. You can claim back 20% of that; in this case £25.00. Do that a few times and it will start to add-up.

That’s a kind of win-win-win we reckon!

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