Higher Rate Gift Aid Rebates
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Higher Rate Gift Aid Rebates

How can you find money here?


Back of the Sofa provides a way to unlock some of  the £2bn that has been left, forgotten, in a dusty cupboard at the Treasury marked 'Unclaimed Gift Aid'... and give it to charities (who don’t even have to be Gift Aid registered to use this service).

Charities that are registered for Gift Aid can claim 25p-in-the-pound on top of any donations made by taxpayers. This is a refund of the Basic Rate tax that the donor has already paid to HMRC when they earned the money in the first place.

However, for Higher Rate or Additional Rate taxpayers, then there's an additional 25p / 31p-in-the-pound available as a refund from the Taxman (ie the rest of the income tax that they have already paid).

So here’s what a donation of £10 is worth to the charity:
 
Donor Pays
Charity Claims
Donor Claims
Total
Not a Tax Payer
10.00
0.00
0.00
10.00
Basic Rate Tax Payer
10.00
2.50
0.00
12.50
Higher Rate Tax Payer
10.00
2.50
2.50
15.00
Additional Rate Tax Payer
10.00
2.50
3.10
15.60
Corporation Tax Payer
10.00
0.00
1.90
11.90
Whereas Basic Rate tax can be reclaimed by the charity using the Gift Aid system, all the other contributions (Higher Rate, Additional Rate and Corporate donations) rely on the donor telling the Taxman via their Accountant or Self-Assessment forms.

Easier said than done... there are 3.5m Higher Rate and Additional Rate taxpayers in the UK but, according to the Office of National Statistics, only 700,000 of them (just 15%) tell the taxman about their donations. That’s 2.8 million people in the UK who either don’t donate anything at all (unlikely) or don't know / don't bother / don't remember to claim. If they were all to donate - say £100 a year each - that's £420 million going missing rather than going to good causes.

So well done HMRC for allowing Higher/Additional Rate taxpayer to put in a claim on donations going back 4 years.

What do you need to do?


  1. Download the HMRC letter template from Back of the Sofa + tips to find a history of donations.
  2. Send these on to your supporters, encouraging any Higher Rate taxpayers to spend 10 minutes on making a claim.
  3. After 45 days, send a reminder that cheques should be about to arrive from HMRC any day.
  4. Encourage any successful claimants to tell all their friends about it too.
  5. Alternatively Back of the Sofa can provide you with a link to an online survey that - once completed by donor - generates a letter for them to simply sign and send on to HMRC.
  6. If you have any delays or need help, contact us on 0808 1645 808 or email us at help@backofthesofa.com.
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