UK Gift Aid & Charity Donation Tax Relief Calculator
Calculate Gift Aid on UK charity donations — how much the charity receives, and the additional relief available to higher and additional rate taxpayers.
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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 keep no direct benefit from a standard Gift Aid donation unless you're a higher or additional rate taxpayer, who can claim back further relief through self-assessment.
What should I know about 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 cost of a £100 donation for an additional-rate taxpayer: £100 − £31.25 = £68.75.
What do I need to know about 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 using Gift Aid anyway means YOU, not the charity, become liable for the shortfall — HMRC will reclaim the difference from you directly.
What do I need to know about 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 is deducted before tax is calculated, so higher and additional rate taxpayers get their full relief immediately through their payslip, rather than needing to claim it back via self-assessment.