Gift Aid Explained

You can increase the value of your support to MSF, at no cost to yourself, by allowing us to claim the tax back on your donations. If you are a UK taxpayer, simply Gift Aid your donations and increase your support of MSF's medical work. For every £1 given, MSF can receive an extra 28 pence.

 

Gift Aid

 

 

Who can Gift Aid their donations?

A donor can use Gift Aid if the amount of tax they have paid in the tax year of the donation is sufficient to cover the amount of tax the charity will reclaim against the donation. The tax paid by the donor may be Income Tax, Capital Gains Tax or tax credits on UK company dividends. Tax years start on the 6th April and run until 5th April the following year.

 

UK residents can pay tax in many ways. Either you:

  • Pay tax from your salary before you receive your wages
  • Have to fill in a self-assessment tax return form each year
  • Have taxable savings, maybe a pension plan or income from investments
  • Have had to pay capital gains tax recently

 

You must pay at least the same amount of tax as the MSF will reclaim in Gift Aid in any tax year. For example: if you make a donation of 10 pounds, MSF will reclaim £2.50 in tax from HMRC so you must have paid £2.50 in tax during the tax year.

 
What do I need to do?

All you need to do is make a simple Gift Aid declaration including your name and full residential address including postcode. This will cover all donations that you have made to MSF in the last 6 years and any that you choose to make in the future. Click here to dowload a Gift Aid form, then just fill it in and return it to us at the address provided on the form.

If you are setting up a direct debit or making a donation online or by telephone, a gift aid option will be provided.

 
How it works?

Gift Aid works by allowing charities to reclaim tax on a donations ‘gross’ equivalent (its value before tax was deducted) at the basic rate. This is 20 per cent from 6th April 2008. In practice this means that for every pound donated to MSF using Gift Aid we can claim an additional 25 pence from HMRC.

 

In addition HMRC will automatically pay MSF a further 3 pence for every pound Gift Aid donation we receive between 6th April 2008 and 5th April 2011; this transitional relief has been provided by the Government to allow charities to adjust to the fall in basic rate tax (from 22% to 20%) from 6th April 2008. This means that for every pound donated under the Gift Aid scheme the charity will continue to receive 28 pence.

 
Higher rate taxpayers

Whether you are paying tax at the higher rate of 40%, or at the lower rate of 10%, MSF still benefits from an extra 28 pence for every pound given. A higher rate taxpayer who makes donations to MSF through Gift Aid can claim back the difference between the higher rate of tax at 40 per cent and the basic rate of tax at 20 per cent on the total value of their donation (the ‘gross donation’).

Donors who complete a Self Assessment tax return will have the option to gift back the higher rate element of the tax relief to MSF. Simply fill in our Charity Code: HAL18QG in box 19a of the Full SA tax return form or section 12 on the Short SA tax return.

Donors who do not complete a Self Assessment tax return can call their tax office and have the higher rate relief reflected in their PAYE tax code.

Read more about Self Assesment Donations on the HMRC website

 

Non taxpayers

If you do not pay tax, you should not use Gift Aid.

 

What if I no longer pay tax or have moved?

If your circumstances change and you no longer pay enough income or capital gains tax to cover the amount claimed by the MSF you can cancel your declaration by contacting the Fundraising team. Your declaration will then not apply to donations you make on or after the date of cancellation or such later date as you specify.

Please also contact the Fundraising team if you have moved address.  

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7:34 PM, Thu Aug 21, 2008

Higher Rate Tax Payers- MSF's HMRC charity code is: HAL18QG