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Completing your tax return: three ways to boost your giving

Photo of Rachel Steeden Rachel Steeden
3 min

Are you among the one-third of UK taxpayers who have to file a self-assessment return by 31 January 2024?  

If so, here are three opportunities to make your generosity go further.

1. Reclaim your relief

Completing a Gift Aid declaration enables a charity to claim back 25p for every £1 you give, representing the basic rate of tax on your giving. If you’re a higher/additional rate taxpayer, you can personally reclaim the difference between the basic and the higher/additional rate, amounting to an extra 25/31.25p per £1. You will need to add up your charitable giving for 6 April 2022 – 5 April 2023 and insert the total in the tax return box labelled ‘Gift Aid payments made in the year to 5 April 2023’.  If you’re a higher/additional rate taxpayer but you don’t file a tax return, you can ask HMRC for a Form P810.

If you use a Stewardship Giving Account or Donor Advised Fund to organise all your charitable giving, it’s easy to find the numbers you need for your tax return. Simply sign in to your account, select ‘Activity’ from the menu at the top of the page, click the ‘Gift Aid’ tab and select the ‘2022/2023’ tax year. You can even download a handy PDF for your records.

Screengrab of the Gift Aid section of a DAF account
View of the Gift Aid tab in a Donor Advised Fund account

 

2. Consider carry back

Did you pay more tax in 2022/2023 than you will pay in 2023/2024? Perhaps you’ve retired or taken parental leave or maybe you sold a business or property in 2022/2023? If so, you may benefit from Gift Aid carry back. This means you can ask HMRC to treat charitable gifts made on or after 6 April 2023 as made during 2022/2023, potentially making more of your giving eligible for Gift Aid. Simply put the relevant figure into the box which says ‘Gift Aid payments made after 5 April 2023 but to be treated as if made in the year to 5 April 2023’.

You can find more information about Gift Aid carry back in our Briefing Paper or on the HMRC website

3. Request recoding

If you’re a PAYE taxpayer committed to regular charitable giving, you might want to ask HMRC to adjust your tax code to take your higher/additional rate relief into account and so deduct less tax through your payslip. This may enable you to give more month-by-month, rather than receiving a lump sum reclaim when you fill out your tax return. By making regular gifts into your Stewardship Giving Account or Donor Advised Fund, you can build a balance ready to support one-off appeals as well as regular donations to our Charity Partners.

One note of caution however – if your circumstances change and you have to reduce your giving, be sure to contact HMRC straight away so that you don’t receive a bill for underpaid tax when you next file a return.

Access your Gift Aid information

Remember to sign in to your Stewardship account to find the total you gave in the last tax year on which we reclaimed tax under the Gift Aid scheme.

Sign in to your account

 

 

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Profile image of Rachel Steeden
Written by

Rachel Steeden

Rachel is a solicitor with 17 years’ experience advising private clients and charities. She enjoys working closely with clients and their advisers to help donors make complex gifts effectively and tax-efficiently.

She is a member of the Charity Law Association, STEP Special Interest Group for Philanthropy, Lawyers in Charities and Lawyers’ Christian Fellowship.

Rachel and her husband Derek lead a Bible study group at their church in central London.

They’re passionate about Church Planting in the UK and overseas, Bible translation and The Local Church.