# Increasing your Gift Aid take from higher rate taxpayers

- Link: https://fundraising.co.uk/2010/11/25/increasing-your-gift-aid-take-higher-rate-taxpayers/
- Published: 2010-11-25T15:27:17+00:00
- Author: Simon George

I know Gift Aid can seem dull, but it really is worth getting right, especially 
with regard to higher rate taxpayers. I picked up a good tip recently for charities
looking to maximise their return from wealthier donors. It works like this.

Those donors who pay 40% or 50% tax can reclaim the difference between what they
have paid in tax and the Gift Aid claimed by the charity. They reclaim this by inserting
details of their donations on their annual tax return. However, it is also possible
for them to nominate a charity (one only) to receive this rebate, using HMRC form“
SA100 Charity” in their self assessment.

Some charities are making effective use of this rule by sending donors an SA100 
Charity form towards the end of the calendar year, with their charity’s HMRC tax
reference number already entered on it. This enables the donor very simply to assign
their additional tax rebate to the charity when they complete their tax return (
usually in January).

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You may of course know some of your higher rate tax paying donors, but not in all
cases, so how do you decide who should receive a form? Again, some charities are
writing to all Gift Aid donors with a form, to ensure they reach all the higher 
rate tax payers. The cost of this is likely to be more than offset by the additional
tax reclaim.

For further details see www.tax-effectivegiving.org.uk

To obtain the correct form, see www.hmrc.gov.uk/forms/sa100-charity.pdf

If you have donors who are higher rate tax payers, this is a real no brainer.

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