Gift Aid Policy

What is Gift Aid ?

Gift Aid is a government scheme which is open to all charity supporters who pay UK Income and Capital Gains tax. For every pound you earn you pay 25p (or 20% basic rate of tax). By signing up to Gift Aid, every time you donate the charity can reclaim the tax you have paid based on the value of the donation you have made.

The charity can claim an extra 25p for every £1 you donate. That means Gift Aid can increase the value of your donations by 25%, so you can help the charity do extra work at no extra costs to you.

Am I eligible to sign up for Gift Aid ?

You're eligible if you're a UK tax payer living anywhere in the world. However, you must have paid enough tax to cover the amount that all the charities you support would claim in Gift Aid in a tax year (6 April – 5 April the following year). Even if you're not employed, you're still eligible for Gift Aid if you pay tax on any of the following:

a personal or occupational pension
bank or building society savings accounts
rental income
stocks and shares
UK and overseas investment dividends

Other taxes such as VAT and council tax do not apply.

As the tax payer, you're responsible for checking your eligibility for Gift Aid as any tax shortfall is the responsibility of the tax payer, so please speak to your accountant or HMRC if you are unclear on how much tax you have paid.

How much tax do I need to pay to be eligible for Gift Aid ?

In one financial year you must have paid at least 25p in income or capital gains tax for every £1 you donate to charity. Every Income Tax payer has a tax-exempt threshold before they start paying tax. So please ensure you are paying enough tax to Gift Aid your donations.

Who can claim Gift Aid?

Only an individual tax payer can claim Gift Aid. Neither businesses, crowd donations nor joint-donors (e.g. husband and wife) can claim.

How do I sign up for Gift Aid?

In order for us to claim Gift Aid on your donations you must provide us with your consent. The consent can be given by ticking the relevant box at time of donating online; verbally over the telephone or by completing a Gift Aid declaration form and returning to us.

How long does the declaration last for ?

The declaration normally covers past, present and future donations. In respect to the past, this means we can make a back-claim of four years.

How do I know if I pay UK income or capital gains tax ?

If any of the following applies to you:

income tax is deducted from your salary before you receive it
you pay tax after submitting a self-assessment form each year
you have a taxable pension plan, savings (eg with a building society) or investment income
you have paid capital gains tax (eg on the sale of a property or share)

If you're unsure of your eligibility for Gift Aid, please contact HMRC.

How would Gift Aid affect my tax ?

Signing up to Gift Aid doesn't affect the tax you pay. We make the claim to HMRC on the tax you have already paid on your donations.

What if I donate to several charities and want to Gift Aid to all of them ?

You can do this by signing a declaration for each charity. As long as each tax year you will have paid at least the equivalent amount of tax that all the charities combined will be claiming, Gift Aid can be applied. It's your responsibility to repay any difference.

What if I don't pay, or stop paying, UK tax ?

We are unfortunately unable to claim Gift Aid on your donation if you do not pay tax. Therefore, if your situation changes in the future, please inform us via email on info@mercytotheworld.co.uk

Who will be able to access my Gift Aid information ?

Only HMRC and Mercy to the World. We do not share your information with anyone else.

How does Mercy to the World utilise Gift Aid Donations ?

Mercy to the World do not hold fundraising events or have any shops to run in the UK which help our running costs to remain minimal. Our appeals and fundraising takes place via social media and free advertising methods. We believe in showcasing our work via our feedback methods and using social media to engage donors which helps us maintain low costs and our 100% donations policy.

Just like any charity organisation, Mercy to the World has administration costs and overheads to meet. While adhering to a 100% donations policy, the charity utilises funds received from Gift Aid and Admin option to cover the costs.

To support our admin costs make sure you select gift aid when donating if eligible.