Giving
Gift Aid — Make Your Donations Worth 25% More
Ben donates £100 to charity and ticks the Gift Aid box. The charity claims £25 from HMRC — the basic-rate tax Ben already paid on that £100 of income. So the charity gets £125 from Ben's £100 donation.
But Ben earns £60,000 and pays higher-rate tax. He claims the difference (another 20%) via his self-assessment tax return — that's £25 back in his pocket. His £100 donation cost him £75, the charity got £125. Everyone wins.
25%extra to charity
Plus higher-rate reclaim on top
CapyPay Top Tips
- Always tick Gift Aid on every donation — it costs you nothing and the charity gets 25% more
- Higher/additional rate taxpayers: claim the extra relief via self-assessment. Don't leave money unclaimed
- Gift Aid donations also reduce your adjusted net income — useful if you're near the £100k threshold
- Payroll giving is even better: donate from pre-tax salary and save the full marginal rate (40% for higher rate)
- You must have paid enough tax to cover the Gift Aid claimed — non-taxpayers shouldn't tick the box
→ Action: Always tick Gift Aid. If you're 40%+, claim via self-assessment.