GIFT AID

How does Gift Aid work?

Gift Aid is one of the easiest ways to make your donation tax effective. Wellspring can reclaim the basic rate tax from the Inland Revenue. There is no extra cost to you and the process is simple – all you have to do is make a Gift Aid declaration.

What is a Gift Aid declaration?

It is simply a statement by an individual taxpayer that they want a charity to get back from the Inland Revenue the tax paid on their donation. This is a great way to add 28 per cent to the value of your gift to Wellspring without it costing you a penny more!

Gift Aid - do I qualify?

Providing you pay tax, Wellspring will be entitled to reclaim on your donations in the same financial year. For example, if you wish to Gift Aid donations that total £100 in one year, you will need to have paid at least £28 to the taxman in respect of that tax year.

Why does it work out at 28 pence for every pound given?

Although basic rate tax is currently 22 per cent, the donation for £1 is treated as the net after tax from £1.28 (£1.28 minus 22 per cent is approximately £1). Wellspring get back the 28 pence.

What if I'm a higher rate taxpayer?

Wellspring can only directly claim back at the basic rate. However, as a higher rate taxpayer, if you declare your donations on your tax return, you can claim a rebate based on the difference between the higher rate and the basic rate when you fill in your self-assessment form.

From April 2004 the self-assessment form covering returns for 2003/04 allows you to nominate a charity to receive any rebate that you are due. The Inland Revenue will pass the repayment directly to the charity. So please consider this simple way to add even more to your gift to Wellspring.

What if I'm a lower rate taxpayer?

If you pay a lower rate (10 per cent or 20 per cent), Wellspring can still claim back 28p for each £1 you donate, provided you pay enough tax to cover the claim in the tax year you make the gift(s).

What does the Gift Aid declaration commit me to?

Absolutely nothing! It just ensures that if you choose to donate to Wellspring, we can claim an extra 28 per cent back from the Inland Revenue.

How long does the declaration last for?

To simplify matters for both you and Wellspring, the declaration wording normally covers present, future and past donations. We are able to claim on any gifts made since the Gift Aid scheme was revised on 6 April 2000, as long as you are eligible.

Who will have access to this information about me?

Only Wellspring and the Inland Revenue. We will not share it with anyone else.

Gift Aid Form