GIFT AID FOR ACADEMIES

INTRODUCTION Gift Aid can be an effective way for Academies to boost funding. Unfortunately Gift Aid on many eligible donations goes unclaimed as Academies are unsure of what is claimable or how to make a claim. WHAT IS GIFT AID? A tax relief which enables charities, including Academies, to reclaim from HMRC 25p on every £1 donated. WHICH DONATIONS QUALIFY?  Donations must be gifts of money made by an individual UK taxpayer to a charity  The donations must be outrights gifts and not a payment for goods/services  The donations must be non- refundable  Donors must not receive services or benefits outside the limits published by HMRC SPECIFIC EXAMPLES OF QUALIFYING AND NON-QUALIFYING DONATIONS: Non-uniform days: All pupils are allowed not to wear school uniform, whether or not they have made a donation.  Pupils must pay to be allowed not to wear school uniform. Appeals to fund extra lessons: A level of voluntary contribution may be suggested, but cannot be enforced. Regardless of whether their parents donated all pupils can take part.  There is a link between which parents give, or how much they give, and which children get extra lessons. Building appeal: Regardless of whether their parents donated all pupils can use the new facilities.  There is a link between which parents give, or how much they give, and which children can use the new facilities. School trips:  For example the cost of a school trip is £8. The voluntary contribution requested by the Academy is £10. As the benefit received is >25% of the donation (£8/£10 is 80%), none of the contribution is eligible for Gift Aid 2 TAITWALKER.CO.UK GIFT AID FOR ACADEMIES DonationMax. value of benefit up to £100 25% of the donation £101 - £1000 £25 £1,001 and over 5% of the donation (up to £2,500)

RECORD KEEPING To claim Gift Aid declarations must be made by the donor which include the following:  The name of your Academy  Donation amount and date  Donor’s name and home address  Confirmation that the donor agrees to Gift Aid being claimed  Confirmation the donor has paid the same amount/more in Income Tax or Capital Gains Tax in that year Example Gift Aid declaration forms are available from HMRC: declarations-claiming-tax-back-on- donations Good record keeping is a must. HMRC select a sample of Gift Aid claims to audit each year. Note that declaration records should be kept for 6 years from the end of the accounting period to which they relate. RECORD KEEPING – SMALL DONATIONS If an Academy has a track record of making Gift Aid claims, then they will also be able to make claims under the Gift Aid small donations scheme (GASDS). Under GASDS Academies can claim Gift Aid on cash donations of £20 or less without keeping Gift Aid declarations CLAIM PROCESS Firstly the Academy must have notified HMRC that it is a charity and have been issued with an HMRC charities reference. If you haven’t done this see: recognition-hmrc recognition-hmrc All Gift Aid claims now must be made online. Information about making claims can be found at: online TAIT WALKER ACADEMIES TEAM: If you have any queries, please don’t hesitate to contact us: 3 TAITWALKER.CO.UK GIFT AID FOR ACADEMIES Cally Clarke Manager Louise Barker Tax Manager Brian Laidlaw Partner This article is designed for information purposes only. Whilst every effort has been made to provide accurate and up to date information, it is recommended that you consult us before taking or refraining from taking action based on matters discussed.

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