How to claim Gift Aid on your Self Assessment tax return
Log into your HMRC online account and start your Self Assessment tax return. To claim Gift Aid relief, you need to complete a self assessment. Look for the “Tax reliefs” section, which is where Gift Aid donations are declared.
In the Gift Aid section, enter the actual amount you donated, not the amount including Gift Aid. If you gave £800 to charities during the tax year, that’s the figure you enter on the tax return you normally submit.
You’re only claiming the higher or additional rate relief here. The basic rate relief (20%) is claimed directly by the charity, so you don’t need to worry about that bit. Gift Aid donations can also extend your basic rate band, which may reduce the amount of your income taxed at the higher rate.
Don’t include donations made through a payroll giving scheme here. These are already taken care of elsewhere on your return.Claiming through your tax return allows you to get tax relief sooner, rather than waiting for the standard process.
Make sure you only include donations from the relevant tax year. Or those you’re carrying back from the following year, which we’ll explain shortly.
Who can claim Gift Aid tax relief?
Anyone who pays UK income tax or capital gains tax can make Gift Aid donations. You need to have paid enough tax to cover the amount that charities will reclaim on your donations. If you receive income from sources such as a pension provider or rental income, you may need to complete a Self Assessment tax return and can claim Gift Aid on your donations.
Higher rate (40%) and additional rate (45%) taxpayers benefit most from claiming Gift Aid. They can reclaim the difference between their tax rate and the basic rate. HMRC may adjust your tax code to reflect Gift Aid tax relief, especially for higher rate taxpayers.
Even basic rate taxpayers should declare Gift Aid donations on Self Assessment. This is especially important if your income is close to the higher rate threshold.
Self-employed people and those with multiple income sources should pay particular attention to Gift Aid claims. These can help reduce your overall tax bill.
Carrying back Gift Aid donations to the previous tax year
Sometimes, you might want to claim Gift Aid tax relief for a donation made in the current tax year on your previous year’s self assessment tax return. This is known as “carrying back” Gift Aid donations, and it can be especially useful if you were a higher rate taxpayer in the previous year but are now a basic rate taxpayer.
To carry back Gift Aid donations, you must have made the donation in the current tax year, and you need to have paid enough tax in the previous tax year to cover the amount the charity will reclaim. You must make this election in your original self assessment tax return for the previous year, and it must be done before the filing deadline (usually 31 January following the end of the tax year).
For example, if you make a Gift Aid donation after 6 April but want the tax relief to apply to the previous tax year, you can elect to carry it back, provided you haven’t missed the self assessment tax return deadline.
This can help you maximise your tax relief, especially if your income or tax rate has changed between tax years. Remember, once the tax return deadline has passed, you can’t carry back donations to a previous year, so plan ahead if you want to take advantage of this option.
