Gift Aid
How do I know if I can gift aid my donation?
You are a UK taxpayer if:
• tax is taken from your wages at source (ie PAYE)
• you fill out a self-assessment form
• you have any taxable savings (in a building society, for instance), or a pension plan, or investment income
• you have paid capital gains tax, or expect to pay it in the near future.
If any of these apply, you can apply for Gift Aid on your donations
How do I know if I pay enough tax to qualify?
As long as you pay enough tax in the year to match the tax that Scots Music Group claims back, your donation will qualify. For example, if you donate £100 in the current tax year, Scots Music Group could claim back £25.00 from the Inland Revenue. So to qualify for Gift Aid you must have paid £25.00 in tax over the course of the year.
What if I pay the higher rate of income tax?
If you are taxed at the higher rate of 40%, Scots Music Group can still only reclaim tax at the basic rate of 20%. The benefit to Scots Music Group works out at 25p for every £1 you give – you can ask for a refund of the remainder on your tax return Your tax form will ask you to keep a record of all your donations (not just to Scots Music Group) for the tax year if you wish to do this. This would be worth £25 on a £100 donation. Some supporters use this to reduce the real cost of their donations, others choose to use the tax saving to donate a little more!
I pay capital gains tax. Can I still gift aid my donations?
Yes. The Gift Aid rules for capital gains tax, which are applied to profits from sales of investments, are the same as they are for income tax.
What if I no longer want Scots Music Group to claim back the tax on my donations?
Just let Scots Music Group know and we will make sure that tax is only reclaimed on gifts up to the date you contact us.
What if I move house?
Please let Scots Music Group know if you move house or any of your details change. This will help us keep records up to date. What if the amount of tax I pay changes?
As long as the total amount of tax you pay each year is more than or equal to the tax that Scots Music Group and other charities reclaim, your gift will still qualify for Gift Aid. If you stop paying tax, please let Scots Music Group know and we will cease reclaiming tax on your donations from the date you specify. If your tax status varies from year to year, Scots Music Group can hold separate Gift Aid declarations for each period when you are a taxpayer, and these will enable us to reclaim the tax on eligible donations you have made during those periods.
Can Gift Aid be claimed retrospectively?
Scots Music Group can claim Gift Aid retrospectively for up to six years. This means that if you make a declaration today, we can reclaim tax on the eligible donations you have made in the past six years, so long as you have paid enough tax to cover the amount we are reclaiming.
If you have any questions about Gift Aid, you may find the answer at ‘HM Revenue and customs for individuals page’ or please call us on 0131 555 7668, email info@scotsmusic.org.