What is Gift Aid?

 

Gift Aid is a Government scheme that encourages people to give to charity.  It enables charities and donors to reclaim the tax on charitable giving.

 

 

What does it mean?

 

Gift Aid works by allowing charities to reclaim tax on the 'gross' equivalent of the donation (i.e. it's value before tax was deducted) at the basic rate, which is currently 20%.  To put £1 into the collection, you will have earned £1.25 and paid 25p (this is 20% of £1.25) in tax before you had it to spend or donate.

 

 

How does Gift Aid work?

 

You make a 'Gift Aid declaration' to FI'SABIL'ILLAH UK, in writing, and FI'SABIL'ILLAH UK can then reclaim the tax you have paid from HM Revenue & Customs (HMRC) (25p for every £1 you donate).  For example, with Gift Aid, you can turn £20 into £25 or £100 into £125.

 

You can Gift Aid your donation at no extra cost. 

 

 

How do I qualify for Gift Aid?

 

If you’re a UK tax payer (Income Tax and/or Capital Gains Tax) you can make a Gift Aid Declaration. For every £1 you donate to FI'SABIL'ILLAH UK in a financial year, you must have paid 25p in Income or Capital Gains Tax in the same financial year to qualify for Gift Aid (Inheritance Tax, Council Tax and VAT do not qualify towards Gift Aid).

 

 

What if you pay the tax at the higher rate?

 

If you pay tax at the higher rate, you can inform HMRC - on your self assessment tax return - and they will pay you the difference between the higher rate tax and that which FI'SABIL'ILLAH UK has reclaimed.

 

 

How do I make a Gift Aid Declaration?

 

Simply download a Gift Aid Declaration form. It takes less than a minute to complete. If you change your name and/or address after, please let us know.

 

Download a Gift Aid Declaration Form

 

 

Is there a minimum donation that Muslim Aid can claim on?

 

No.  FI'SABIL'ILLAH UK can claim back the Gift Aid on any amount.

 

 

How long does the Gift Aid declaration last for?

 

The declaration will be indefinite, unless you tell us to cancel it.  FI'SABIL'ILLAH UK does need to know if you are no longer a UK tax payer or if you change your name and/or address.  If you don't, then you could be sent a bill by HMRC for any tax claimed by FI'SABIL'ILLAH UK that you have not paid.  FI'SABIL'ILLAH UK can claim back up to four years from the day of the declaration.