UK Gift Aid & Charity Donation Tax Relief Calculator

Gift Aid Guide

How Gift Aid Works

Gift Aid allows UK charities to reclaim the basic rate income tax (20%) from HMRC that you have already paid on your donation. You must be a UK taxpayer who has paid income tax or capital gains tax at least equal to the Gift Aid claimed. The charity reclaims: 25p for every £1 you donate (because £1 of donation represents 80p of post-tax income, and the remaining 20% of the gross donation = 20p/80p = 25p per £1). Example: £100 donation. Charity claims Gift Aid: £25. Charity receives: £125. You ke

Higher Rate Taxpayer Relief

Higher rate taxpayers (40%) paid 40% tax on the income used for the donation, but HMRC only gives 20% (basic rate) to the charity. The extra 20% can be claimed back by the donor via self-assessment. On £100 donation: charity gets £125 (as before). Donor claims additional 20% of gross (£125 × 20%) = £25 back via self-assessment. Net cost of £100 donation = £100 − £25 = £75. Additional rate (45%) taxpayers: HMRC gives charity 20%, donor claims back 25% (45% − 20%) of gross donation = £31.25. Net c

Gift Aid Declaration

To use Gift Aid: a charity must hold a valid Gift Aid declaration from you. Declarations can be given once (covering future donations) or per donation. Online donations: most platforms (JustGiving, GoFundMe, Charity websites) include a Gift Aid tick box. Cash donations: the charity must have a signed declaration. Requirements: you must be a UK taxpayer. Your total income tax paid in the year must be at least equal to the Gift Aid the charity claims (25p per £1 donated). Under-paying tax and usin

Payroll Giving (Give As You Earn)

Payroll giving (GAYE) is an alternative to Gift Aid — donations are deducted from your pay before income tax is calculated. Basic rate taxpayers: £100 donation costs £80 from gross pay (same as Gift Aid). Higher rate taxpayers: £100 donation costs £60 from gross pay (better than Gift Aid for higher rate, because National Insurance savings may also apply through salary sacrifice arrangements). No Gift Aid declaration needed for payroll giving — HMRC issues tax relief automatically. Payroll giving