Gift Aid is a special tax relief which benefits UK charities and can provide ICM with vital additional income. If you are a UK tax-payer, Gift Aid increases the value of ICM giving by 25% because ICM can reclaim the basic rate of tax on your gifts at no extra cost to you –but you must opt-in!
Gift Aid boosts ICM’s income by adding an extra 25p for every £1 you donate. Therefore, if you give £100 each month to ICM and complete a Gift Aid declaration, your giving is boosted by HMRC so that it becomes £125 each month or £1,500 each year! Imagine what a difference that could make to ICM and to the gospel work we are doing!
Are your able to Gift Aid?
If you are a UK tax-payer, you will be able Gift Aid your donations as long as you pay a sufficient amount of Income Tax or Capital Gains Tax in that financial year. The tax you pay must be equivalent (or more) to the amount of Gift Aid that all the charities you support will reclaim on your donations in that tax year. From April 2016, the Income Tax Personal Allowance has increased to £11,000 for most individuals and therefore if your income is below £11,000, you will no longer be able to Gift Aid your charitable giving. If you make a Gift Aid declaration and do not pay sufficient tax, then it will be your responsibility to pay the difference to HMRC.