Gift Aid is a scheme set up by the Inland Revenue through which charities can claim back tax on any donations made by individuals, whether large, small or one-off. It provides a great opportunity for donors to increase the value of their donations to charity. Every time you pay membership subscriptions, you pay with money that has been taxed. Gift Aid pays that tax back to Scouting – on average this is 20p for every pound spent.
How much is it worth to the Group? For example, if your subscription is £100 per annum, it is actually worth £125 if the Group claims back the tax. The Group claims the £25 tax back from HMRC. Therefore, if there are 50 children each paying £100 a year, the Group could claim back up to £1250 from HMRC each year! If the taxpayer pays a higher rate tax the Group can still only claim back tax at 20%. However, the higher rate taxpayer can claim the extra 18% in additional tax relief when they complete their Self-Assessment Tax Form. They can also donate this additional relief to a charity of their choice.
When you join the group you will be asked to complete a Gift Aid form.
Is Gift Aid declaration complicated? No, it is very simple and only requires you to declare that you want your subscriptions to be treated as Gift Aid payments.
Do I have to complete a separate declaration for each of my children in the Group? Yes, one declaration covers each child in respect of their subscriptions.
Will I have to reveal any personal tax information? No, all that is needed is very basic information including your name, address and confirmation that you want your Subscriptions to be treated as Gift Aid payments.
Will it cost me anything extra? No, the Group will simply claim back tax that would have otherwise have gone to HMRC.
What will I have to do in the future? Nothing, once you complete the declaration this covers your child(ren) until they leave the Group. You need only notify the Group if you change name, address or are no longer able to confirm the details on the declaration.
What happens if my child changes section? Nothing, as the Gift Aid declaration is not in respect of a specific sum but merely the subscription, however much that will be. When your child/young person joins Explorers a new declaration should be completed with the District’s details on. The Scout District will claim Gift Aid in respect of their Explorer Section.
What happens if I stop paying tax? If you stop paying tax or have paid insufficient tax to cover the amount the Group will be claiming back you should inform the Scout Group and they will not make a claim for your payments.
What happens if my child leaves the Group? As there is no legal commitment in a Gift Aid declaration the Group will only claim back the tax on the payments you made before the child left the Group.
If I am a higher rate tax payer can I claim back the extra tax? Although the Group can only claim back tax at the standard tax rate, higher rate taxpayers can claim the difference back as tax relief on their self-assessment form.