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Higher Rate Gift Aid

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 could be 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 5 million Higher Rate and Additional Rate taxpayers in the UK but, according to HMRC, only a fifth of them tell the taxman about their donations. That’s 3.9 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. That's over £4o0 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. Compile a list of charity donations that you have made between 5th April 2013 and 5th April 2017 (start of current tax year) but have not told HMRC about.
  3. If you're unsure where to find these, log on to giving sites such as Just Giving and view your donations in the My Account / See My Donations area or try using the search function of your email account to find receipts sent from giving sites.
  4. Paste your list into the template letter, fill in your details (including National Insurance number), sign it and send it to HMRC.
  5. Wait 45 days and HMRC will write back to you enclosing a cheque for 'Overpayment Relief'.
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