Gift Aid Calculator UK 2025/26
Calculate how much a charity receives after Gift Aid, and your personal tax relief as a higher rate taxpayer
Enter the amount you are donating (this is the net amount you pay, before Gift Aid).
How Gift Aid Works in the UK
Gift Aid is the UK government's scheme that allows registered charities, community amateur sports clubs (CASCs), and some other organisations to reclaim the basic rate income tax paid by donors on their charitable gifts. The scheme means that for every pound a donor gives, the charity can claim an extra 25 pence from HM Revenue & Customs (HMRC), at no extra cost to the donor.
The system works because when you make a donation from your net (after-tax) income, the basic rate tax (currently 20%) has already been deducted by HMRC. Gift Aid effectively allows the charity to reclaim that tax on your behalf. If you donate £80 of your after-tax income, the gross value of that donation before tax was £100, and the charity is entitled to reclaim the £20 tax that HMRC retained.
Gift Aid was first introduced in the United Kingdom in 1990 as part of the Finance Act 1990, initially as a scheme for lump-sum donations. It was significantly expanded in the April 2000 Budget by Chancellor Gordon Brown, removing minimum donation thresholds and making it available for any donation amount, including regular giving by direct debit and standing order.
Gift Aid by Tax Rate: 2025/26
| Tax Status | You Donate | Charity Receives | HMRC Pays | Your Effective Cost |
|---|---|---|---|---|
| Basic rate (20%) | £80 | £100 | £20 | £80 |
| Higher rate (40%) | £80 | £100 | £20 to charity | £60 (after your £20 relief) |
| Additional rate (45%) | £80 | £100 | £20 to charity | £55 (after your £25 relief) |
| Non-taxpayer | £80 | £80 | Nothing | £80 |
The Gift Aid Declaration
For a charity to claim Gift Aid on your donation, you must complete a Gift Aid declaration. This is a simple statement confirming that you are a UK taxpayer and that you want the charity to claim Gift Aid on your donation. Declarations can be made:
- Online when making a donation through a charity's website, JustGiving, Virgin Money Giving, or similar platforms.
- By ticking a Gift Aid box on a paper sponsorship form or donation envelope.
- Over the phone when donating by phone to a charity.
- In person at charity shops, events, or fundraising activities.
A single declaration can cover all past, present, and future donations to the same charity, meaning you do not need to tick the box every time if you donate regularly. However, you have a legal obligation to inform the charity if you become a non-taxpayer, as claiming Gift Aid when you have not paid enough tax is a criminal offence — the donor (not the charity) is liable for any overpaid tax reclaimed from HMRC.
Charities must retain Gift Aid declarations for at least six years after the last donation covered by that declaration, to satisfy HMRC audit requirements.
Higher Rate Taxpayer Relief: Claiming Through Self Assessment
If you are a higher rate (40%) or additional rate (45%) taxpayer, you are entitled to additional tax relief beyond the basic rate that the charity reclaims. The charity always reclaims only the basic rate (20%), but the difference between your marginal rate and the basic rate can be claimed personally through your Self Assessment tax return.
Worked Example: Higher Rate Taxpayer Donating £1,000
You donate: £1,000 net (from your after-tax income)
Gross donation value: £1,000 ÷ 0.80 = £1,250
Charity claims from HMRC: £250 (20% of gross £1,250)
Charity receives in total: £1,250
Higher rate relief you can claim: 20% × £1,250 = £250 (via Self Assessment)
Your effective net cost: £1,000 − £250 = £750 for a £1,250 donation to charity
Gift Aid Small Donations Scheme (GASDS)
The Gift Aid Small Donations Scheme (GASDS), introduced in April 2013, allows charities to claim Gift Aid-style payments on small cash and contactless donations of up to £30 per donation, without requiring a Gift Aid declaration from the donor. This makes it practical to claim on collecting tin donations, street collections, and small anonymous cash gifts where obtaining a declaration would be impractical.
Charities can claim on up to £8,000 of small donations per year under GASDS. The rate matches the standard Gift Aid rate, so charities can receive up to £2,000 from HMRC on top of the £8,000 collected. To be eligible, a charity must have been registered for at least two years and must make a corresponding Gift Aid claim in the same tax year. Some charities can claim additional allowances for community buildings such as churches or village halls.
Gift Aid for Online Donations and Text Giving
When you donate online through platforms such as JustGiving, Enthuse, or a charity's own website, Gift Aid is typically handled automatically when you tick the Gift Aid box at checkout. These platforms aggregate Gift Aid claims and submit them to HMRC on behalf of charities, simplifying the administrative burden.
For text message donations (e.g., texting a code to a short number), Gift Aid cannot be automatically claimed because the platform cannot confirm your taxpayer status without a declaration. However, many charities will send a follow-up text or email asking you to complete a Gift Aid declaration after a text donation.
Payroll Giving: The Alternative to Gift Aid
Payroll Giving (also called Give As You Earn or GAYE) is a different mechanism that allows employees to donate directly from their gross salary before tax is calculated. Unlike Gift Aid, where the charity reclaims tax after the fact, Payroll Giving reduces your taxable income directly at source:
- Basic rate taxpayer: A £100 payroll gift costs £80 (the same as Gift Aid).
- Higher rate taxpayer: A £100 payroll gift costs £60 immediately, with no need to claim via Self Assessment.
- Additional rate taxpayer: A £100 payroll gift costs £55 immediately.
The advantage of Payroll Giving for higher rate taxpayers is simplicity — the relief is immediate and automatic, with no need to complete a Self Assessment return. However, Payroll Giving requires your employer to be registered with a Payroll Giving Agency, and the charity must be registered with HMRC.
Gift Aid Eligibility: Overseas Charities and CASCs
Gift Aid is generally only available for donations to UK-registered charities, Scottish charities, Welsh charities, Northern Ireland charities, and Community Amateur Sports Clubs (CASCs) registered with HMRC. Since 2010, charities registered in the EU (including charities in the Republic of Ireland) could qualify for Gift Aid; however, post-Brexit rules have changed the eligibility of overseas organisations.
Foreign charities are not generally eligible for Gift Aid unless they are specifically recognised by HMRC. If you donate to a charity working overseas (e.g., disaster relief), Gift Aid is still available if the charity itself is UK-registered and HMRC-recognised.
Gift Aid and Legacies / Wills
Charitable legacies (gifts left in a will) are treated differently from lifetime gifts. Gifts to charity in a will are exempt from Inheritance Tax (IHT) and do not attract Gift Aid. However, they reduce the taxable estate and can also reduce the IHT rate on the remainder of the estate. If 10% or more of the net estate is left to charity, the IHT rate on the rest of the estate reduces from 40% to 36%.
Common Gift Aid Mistakes to Avoid
- Claiming when not a taxpayer: If you do not pay UK income tax or capital gains tax equal to the Gift Aid claimed, you are personally liable for the shortfall.
- Not notifying the charity when status changes: If you become a non-taxpayer (e.g., you retire), you must inform charities with standing declarations.
- Paying too little tax in the year: If your income drops below the personal allowance and you do not pay tax, Gift Aid declarations should be withdrawn.
- Charities accepting Gift Aid on benefits received: Gift Aid is only valid on genuine donations. If you receive a significant benefit in return (e.g., membership perks worth more than the charitable element), Gift Aid may not apply to the full amount.
Frequently Asked Questions
How does Gift Aid work?
Gift Aid allows UK charities to reclaim the basic rate tax (20%) on your donation from HMRC. If you donate £80 and tick the Gift Aid box, the charity claims an additional £20 from HMRC, meaning your £80 donation is worth £100 to the charity. You must be a UK taxpayer and have paid enough tax to cover the amount the charity will reclaim.
Who can claim Gift Aid?
Gift Aid can be used when you are a UK taxpayer who has paid enough income tax or capital gains tax to cover the Gift Aid claimed. Non-taxpayers, Scottish taxpayers with low incomes, and those with income below the personal allowance should not use Gift Aid unless they have paid sufficient tax from other sources such as capital gains.
What is the Gift Aid declaration?
A Gift Aid declaration is a statement confirming you are a UK taxpayer and want the charity to reclaim tax on your donation. One declaration can cover all past, present, and future donations to the same charity. Charities must retain declarations for at least six years. You must inform the charity if your tax situation changes.
Can I claim Gift Aid as a higher rate taxpayer?
Yes. As a higher rate (40%) taxpayer, you can claim the difference between your tax rate and the basic rate (20%) through Self Assessment. For a £100 gross donation, you reclaim £20 additional relief, reducing your net cost to £60 while the charity receives the full £100. Additional rate (45%) taxpayers can reclaim £25, paying effectively £55 for a £100 donation.
What is the Gift Aid Small Donations Scheme?
GASDS allows charities to claim Gift Aid on small cash donations of up to £30 per person without needing a formal declaration. Charities can claim on up to £8,000 of small donations per year (up to £2,000 from HMRC). It covers collecting tin donations, street collections, and small anonymous gifts where obtaining declarations is impractical.
Does Gift Aid affect the charity or the donor more?
Gift Aid primarily benefits the charity by boosting every donation by 25%. The charity receives £1.25 for every £1 donated at no extra cost to a basic rate taxpayer. Higher rate taxpayers benefit personally through additional tax relief claimed via Self Assessment. Effectively, Gift Aid is a government subsidy to UK charities channelled through the income tax system.