Tax-efficient ways to give to charity
There are three ways you can beat the tax-man and make your gift to Battersea Dogs Home worth even more.
Gift Aid
You can make payments, large or small, regular or one-off to Battersea Dogs Home under Gift Aid. Simply complete the Gift Aid declaration, which requires you to confirm that you will pay an amount of income tax or capital gains tax equal the tax we claim back on your donations.
Gift Aid allows us to reclaim the basic rate tax on your donation from the Inland Revenue. This means that the donation is worth an extra 28% to us - we can claim back 28p for every �1 you give. If you are liable at the higher rate of income tax we can claim the difference (18% in 2001/02) between the higher rate of 40% and the basic rate of 22% on the grossed up donation.
If you donate online, our donation processing agency Justgiving will handle the Gift Aid for us.
If you make a donation by post, print off a Gift Aid form, and enclose it with your donation.
Please note that, for Battersea Dogs Home to claim back the tax:
- You must be a tax-payer. You must pay an amount of income tax and/or capital gains tax a least equal to the tax the the Charity reclaims on your donations in the tax year (currently 28p for each �1 you give).
- If your circumstances change and you no longer pay tax on your income and capital gains equal to the tax that we can reclaim, you MUST cancel this declaration.
- If you pay at the higher rate, you can claim further tax relief in your Self Assessment tax return.
- You must contact us if you would like to cancel this declaration or notify us of a change of name or address.
Businesses can also give tax effectively through Gift Aid.
For more information on any aspect of Gift Aid, visit the Inland Revenue website.
Payroll giving
Payroll Giving provides tax relief at source for individuals who give to charity by direct deduction from their pay.
Once an individual has signed up to the scheme the employer simply deducts the relevant amount from their pay before deducting tax under PAYE and sends the payment to an agency charity. The agency charity then distributes the amounts donated to the charities selected by the individual.
Until April 2003 donations under the scheme attract a 10% supplement from the Government. This is paid over to the charities concerned by the agency charities.
For more information about the operation of the scheme for employees and employers visit the Inland Revenue website.
Giving certain shares or securities
From April 2000, a new tax relief was introduced to encourage individuals and companies to give certain shares and securities to charity. From 6 April 2000 individuals can claim a deduction for the gift against their income for income tax purposes.
To find out full details, visit the Inland Revenue website.