Self Assessment and Charitable Donations: Gift Aid Claims

If you donate to charity through Gift Aid, the charity claims basic-rate tax relief automatically. But if you are a higher-rate or additional-rate taxpayer, you can claim extra relief through Self Assessment.

How Gift Aid Works

When you donate £100 to charity through Gift Aid:

• The charity claims £25 from HMRC (basic-rate tax relief at 20% of the gross £125)
• Your £100 donation is treated as a gross donation of £125
• The charity receives £125 in total

Higher-Rate Relief

If you pay tax at 40% or 45%, you can claim the difference between your rate and the basic rate:

• 40% taxpayer: Claim extra 20% relief = £25 on a £100 net donation
• 45% taxpayer: Claim extra 25% relief = £31.25 on a £100 net donation

This relief is claimed on your Self Assessment return in the tax reliefs section.

Impact on Your Tax Bill

Gift Aid donations also extend your basic-rate band. This can be particularly valuable if your income is near the higher-rate threshold (£50,270) or the personal allowance taper (£100,000).

Carry Back

You can carry back Gift Aid donations to the previous tax year if you make the election on your return. This is useful if you had higher income last year than this year.

Record Keeping

Keep records of all Gift Aid donations, including the charity name, amount, and date. Accounted helps you track charitable giving alongside your other financial records.

Accounted handles your bookkeeping, tax estimates, and MTD submissions automatically. Start your free trial — no credit card required.