Tax Efficient Giving (at March 2026)

Did you know that if you are a UK taxpayer you can help AtaLoss much more by gift-aiding any donation you make - and for higher rate taxpayers, there can be benefits also for you.

What Is Gift Aid and How Does It Work?

Gift Aid is one of the simplest and most effective ways of giving to charity. For every donation you make, the charity can reclaim an extra 25% from HMRC at no additional cost to you.

For example, if you donate £100 to AtaLoss, we can receive £125.

Personal Benefits for Higher-Rate Taxpayers

If you’re a higher or additional rate taxpayer, you may also be able to personally benefit from Gift Aided donations. HMRC will only pass on basic-rate tax to us, and if you’ve paid tax at above the basic rate it’s likely you are entitled to claim back the difference.

For example, if you donate £100:

AtaLoss can claim an additional £25 through Gift Aid
And you could claim back £25 (higher-rate taxpayers) or £31.25 (additional-rate taxpayers).

To claim this additional relief, you will need to:

Complete a Gift Aid declaration for the charity
Keep a record of your Gift Aid donations
Include them on a self-assessment tax return (or by calling HMRC).

Further Benefits for Additional-Rate Income Taxpayers: Over £100,000 p.a.

If your income is between £100,000 and £125,140 per annum the benefits of Gift Aid can be even more significant. Earnings in this bracket reduce your personal allowance (£12,570) by £1 for every £2 you earn.

This reduction, combined with the 40% tax rate, means that the portion of earnings in this bracket results in tax equivalent to 60%. Income above £125,140 is then taxed at 45%. Free childcare support up to £2,000 per child can also be lost.

If you are in the £100,000 - £125,140 per annum income bracket and give to charity, it could benefit you as well as the charity.

For example:

for every £100 you give, the charity gets £125.
You’re a higher-rate taxpayer so you are likely to be able to claim back £25.
In addition, the donation will reduce your adjusted net income by the gross amount (£125), and you could regain £62.50 of your lost personal allowance. This creates a further tax saving of £25 (40% of £62.50).

In short, for every £100 given in this income bracket, the majority of people can claim back a total of £50.

Higher Earners with Young Children

For some families, Gift Aided donations that reduce net income to under £100,000 qualify them for free childcare hours.

This can be very cost-effective.

For example, if you earn £110,000, reducing your adjusted net income by £10,000 could qualify you for free childcare hours worth £9,600.

You can do this by making a Gift Aid donation of just £8,000 (worth £10,000 to the charity) and then claim £4,000 in tax relief, meaning the total cost to you is only £4,000.

In short, for those that qualify a donation of £8,000 costs them £4,000, the charity receives £10,000 and they also qualify for free childcare hours.

Early Claiming of Tax Relief

Another useful feature of Gift Aid is that most people can claim relief for a donation made in the current tax year when they submit their tax return for the previous year.

For example, your upcoming tax return for the tax year to last April could include Gift Aid donations you’ve made so far in this tax year. This is particularly beneficial if you were in a higher tax band last year than this year, e.g. you’ve retired, or you’re self-employed with a fluctuating income.

Gift Aid Eligibility

To use Gift Aid:

You must be a UK taxpayer
You must have paid enough in tax (income tax or capital gains tax) to cover the amount the charity reclaims
You cannot claim back more tax than you actually paid in a tax year
You must have paid the donation with your own money
You cannot have received anything in exchange for your donation (including raffle tickets)

Other Tax Efficient Giving

While Gift Aid is primarily for cash, donating shares, land or property is exempt from Capital Gains Tax.

Please Note

Giving to charities should also always be voluntary, feel comfortable and be affordable for you.
There are other ways to reduce your adjusted net income, such as making pension contributions, which might align better with your financial goals and which can be more personally beneficial.
Because tax rules and personal circumstances vary, we recommend you consult a qualified accountant or financial advisor, or refer to guidance from HM Revenue & Customs. Whilst we cannot recommend a service provider, Ascent Financial Consulting have helped us with this information and would be willing to take enquiries: ascentfc.co.uk.

Thank you for any gifts you do decide to make to AtaLoss, whether large or small. Every donation makes a worthwhile contribution to our aims and we are extremely grateful.