Using the Gift aid scheme allows charities such as Seagull Trust Cruises to increase the value of your donation by reclaiming the basic tax from HM Revenue and Customs; it costs you nothing more, but allows us to boost the value of your gift.
The Gift Aid scheme is for gifts of money by individuals who pay UK tax. Gift Aid donations are regarded as having basic rate tax deducted by the donor. Seagull Trust Cruises take your donation - which is money you've already paid tax on - and reclaim the basic rate tax from HM Revenue & Customs (HMRC) on its 'gross' equivalent - the amount before basic rate tax was deducted.
The claim is calculated on the 'gross' equivalent value of the donation - i.e. the amount before tax is deducted. If we assume a standard rate of income tax of 20 per cent, this means every £10 under Gift Aid is worth £12.50 to Seagull Trust Cruises.
How to Make a Donation Using Gift Aid
In order to make a Gift Aid donation you’ll need to complete the Gift Aid declaration form (also downloadable at the end of this page)
Gifts Made Jointly by People Living Together
You can use Gift Aid for gifts you make jointly if you tell us how much each of you is giving and if you each make a Gift Aid declaration.
Making Sure You’ve Paid Enough Tax to Use Gift Aid
You can use Gift Aid if the amount of Income Tax and/or Capital Gains Tax you’ve paid in the tax year (6 April one year to 5 April the next) in which you make your donation is at least equal to the amount of basic rate tax Seagull Trust Cruises is reclaiming on your gift. If you make a number of Gift Aid donations, you will need to consider the tax you’ve paid on each donation on an accumulative basis. If you don’t pay enough tax you may be required to pay any shortfall in tax to HMRC.
You don’t necessarily have to be working to be paying tax. Apart from tax on income from a job or self-employment, the tax you’ve paid could include:
tax deducted at source from savings interest
tax on State Pension and/or other pensions
tax on investment or rental income
Capital Gains Tax on gains
But only UK tax counts, so if you only pay tax outside the UK you won’t be able to use Gift Aid.
How to Check if You’ve Paid Enough Tax
To work out if you’ve paid enough tax to cover your donations, divide the donation value by four. For example, if you give £100 in a particular tax year you will need to have paid £25 tax over that period. (£100/4 = £25). (Note that this calculation is based on the basic rate tax of 20 per cent).
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