Donors must
pay enough UK income tax and/or capital gains tax themselves to cover the amount of tax the charity will reclaim
give the charity a gift aid declaration, which should include
- their name
- their home address
- the charity’s name
- details of the donation saying that it is a gift aid donation
- confirmation that they have paid UK tax to cover the tax the charity will reclaim.

A declaration can be made to cover individual donations,a series of donations, can cover donations made during a specified period or to cover all future donations. They can also be backdated for up to 6 years prior to the date of the declaration provided the donation was made since 6 April 2000.

Tax relief
If a customer pays the
basic rate of tax, they cannot claim further tax relief on the payments
higher rate of tax, they can claim higher rate relief on the payments by entering the donations in the gift aid box on their self assessment tax return. Customer's who receive a form P810 can declare their gift aid payments on it.

Gift Aid Scheme for charities

Gift Aid is a scheme to encourage individuals and businesses to donate more money to charity.

How Gift Aid works

Under the scheme, the SYCET can claim back the basic rate tax already paid on gifts of money received from individuals who pay or have paid UK tax.

The scheme also allows UK companies to make gifts of money to charity before any tax is deducted.

Key requirements of the Gift Aid Scheme

• Gift Aid only applies to donations of money.

• Gift Aid donations from individuals must be supported by a valid ‘Gift Aid declaration’.

• You can give donors modest tokens of appreciation (called ‘benefits’) in order to acknowledge a gift but there are strict limits on their value.

• The SYCET must keep adequate records to support any claims for Gift Aid repayments and of any benefits provided to donors.

• Donations and/or tax repayments received through the Gift Aid scheme must only be used for charitable purposes.

Donations that give a right of admission to view SYCET’s property and some other particular types of donation must follow special rules to qualify for Gift AiGift Aid declarations

Before the SYCET can claim tax on a donation made by an individual it needs to obtain a Gift Aid declaration from the donor. The declaration must be linked to the making of a donation.

A Gift Aid declaration provides written or verbal confirmation from an individual donor that:

• they have paid or will pay at least as much UK tax (for the tax year in which they donate) as the amount the SYCET will reclaim on their donation(s)

• they want the SYCET to claim tax back for the donations specified

There are special rules for joint declarations by spouses, members of a partnership and there is a modified procedure for declarations connected to donations for sponsored events.