Claiming Gift Aid on in-person and contactless donations
What a UK charity needs to claim 25% Gift Aid on donations taken in person: the declaration, who qualifies, what records to keep, and the 4-year time limit.
The short answer
Gift Aid lets a charity claim 25p from HMRC for every £1 a UK taxpayer gives. To claim it, you need a Gift Aid declaration from the donor: their full name, their home address, and a statement that they want Gift Aid to apply. A tap on a card reader or cash in a bucket doesn't give you that, so for donations taken in person you need to collect the declaration when the donor gives, or afterwards.
Small donations of £30 or less given without a declaration may qualify for a top-up under the Gift Aid Small Donations Scheme instead. See our guide to GASDS.
How much Gift Aid is worth
HMRC's guidance puts it simply: “You can claim back 25p every time an individual donates £1 to your charity”.
| Donation | Gift Aid you can claim | Total to your charity |
|---|---|---|
| £5 | £1.25 | £6.25 |
| £10 | £2.50 | £12.50 |
| £30 | £7.50 | £37.50 |
| £100 | £25.00 | £125.00 |
Who can Gift Aid a donation
Gift Aid applies to donations from individuals, not from limited companies. The donor must have paid at least as much UK Income Tax or Capital Gains Tax in the tax year as all the charities they give to will claim on their gifts. If they paid less, they are responsible for paying the difference. Your declaration has to explain this to them.
What a Gift Aid declaration must include
HMRC lists what every declaration needs:
- the name of your charity
- the donor's full name
- the donor's home address
- whether it covers past, present and future donations, or just a single donation
- a statement that the donor wants Gift Aid to apply
- an explanation that the donor must pay at least as much UK Income Tax and/or Capital Gains Tax in the tax year as all charities will claim on their gifts, and that they are responsible for paying any difference
Taking declarations in person
On a form, on paper or on screen
A declaration taken at the point of giving needs the same information whether it is written on paper or filled in online, for example on a tablet or on the donor's own phone.
Spoken declarations
A donor can make a declaration verbally, but it must include the same information as a written one. You must then send or give the donor a written confirmation with the same details, telling them they can cancel the declaration within 30 days. For your records, HMRC accepts either an audio recording of the donor making the declaration, or a record of when you sent the confirmation.
Sponsored events
Sponsorship forms can include a Gift Aid declaration. They also need to record the amount of each donation, the date pledged donations were collected, and the date the money was handed over to your charity.
One declaration can cover future and past gifts
A declaration doesn't have to be for a single gift. HMRC accepts wording that covers all donations made on or after the date of the declaration, and all donations made in the 4 years before the current tax year. Its guidance says that, depending on the description used, a declaration “may apply indefinitely to future donations to the named charity”.
There is no HMRC requirement for donors to renew a declaration. HMRC does recommend reminding donors from time to time that they need to have paid enough tax, which you can do through a newsletter or general communication.
Donations you can't claim Gift Aid on
- donations from limited companies
- payments for goods or services, or made because your charity bought goods or services
- donations where the donor gets a benefit over HMRC's limits
- gifts of shares
- donations from charity cards or vouchers, such as Charities Aid Foundation vouchers
- donations made through Payroll Giving
- donations received before you were recognised as a charity
Records to keep
Most charities must keep declaration records for 6 years from the end of the accounting period they relate to. If an enduring declaration covers regular donations, such as a direct debit or standing order, HMRC says to keep it permanently.
Time limits and how to claim
- Claim within 4 years of the end of the financial period you received the donation in: the tax year (6 April to 5 April) for trusts, or your accounting period for CASCs, CIOs and limited companies.
- Claim online through HMRC's Charities Online service, using eligible software or a spreadsheet of your donations. Claims of over 1,000 donations must use software. You can also claim by post on form ChR1.
- HMRC says you should get the payment within 5 weeks.
Common questions
Can I claim Gift Aid on a contactless donation?
Yes, if the donor gives you a valid Gift Aid declaration with their full name and home address. A tap on its own does not tell you who the donor is. A contactless donation of £30 or less with no declaration may qualify for the Gift Aid Small Donations Scheme (GASDS) instead.
Does a Gift Aid declaration expire?
No. HMRC does not require donors to renew a declaration. Depending on its wording, a declaration can cover all future donations to your charity until the donor cancels it. HMRC recommends reminding donors from time to time that they need to pay enough tax, for example in a newsletter.
How long do we have to claim Gift Aid?
You need to claim within 4 years of the end of the financial period you received the donation in. For trusts that is the tax year; for CASCs, CIOs and limited companies it is your accounting period.
Can we claim Gift Aid on donations from companies?
No. Gift Aid only applies to donations from individuals. Donations from limited companies cannot have Gift Aid claimed on them.
Sources
- GOV.UK: Claiming Gift Aid as a charity or CASC
- GOV.UK: What you can claim Gift Aid on
- GOV.UK: How to claim Gift Aid
- GOV.UK: Gift Aid declarations, claiming tax back on donations
- HMRC: Charities detailed guidance notes, Chapter 3: Gift Aid
This guide is general information for UK charities, not tax advice. HMRC's guidance can change, so check the sources above before relying on it for a claim.