FAQs Gift Aid
Gift Aid is a simple initiative which allows your PTA to
increase the amount raised from UK taxpayers on cash donations.
Don't be put off by thinking it's time-consuming, as PTFA chair
Louise Skitt told us, 'We raised an additional £341 in Gift Aid
from a sponsored bounce, for one person filling in an online form
for one evening - it was definitely worth the effort!'
What is Gift Aid?
Gift Aid is quite simply free money and a great way to boost
your PTA's income. The official terminology from HM Revenue &
Customs (HMRC) is 'Gift Aid is a tax relief which allows a charity
to reclaim from HMRC the basic rate of Income Tax a donor has paid
on their donation (gift).' In layman's terms this means that those
supporters who are current UK tax payers are eligible to Gift Aid
their cash donations. This gives your PTA an extra 25p for every £1
How does Gift Aid work?
When a UK taxpayer makes a monetary donation to your PTA (that
is an outright gift), they have already paid tax on that money.
Your PTA can, through Gift Aid, reclaim the tax paid. By asking
your supporters for permission to reclaim the tax they have already
paid on their donation, you can increase the value of such
donations by a whopping 25%!
Are there any specific rules?
Your PTA needs to register with HMRC, and the donor cannot
receive goods or services in return for their cash gift. Gift Aid
could apply for:
Non-uniform days: Payments from parents to enable
pupils to wear their own clothes on a specified day can be Gift
Aided as long as pupils are permitted not to wear uniform, whether
or not a donation has been made. If the donation is compulsory,
then Gift Aid cannot be claimed.
Sponsored events: As long as the supporter
receives nothing in return, then donations made through sponsored
activities such as a fun run or sponsored bounce, read or
spellathon etc can be subject to Gift Aid.
Ticket entry to a PTA event: Payments for such
tickets CANNOT be Gift Aided but a voluntary donation, on top of
the minimum ticket price, can.
How does your PTA qualify?
You'll need to apply to HMRC for confirmation that your PTA is a
charity entitled to claim UK charity tax reliefs. This is a fairly
straightforward process. Once approval has been given your PTA will
receive a reference number and confirmation of the date the
entitlement to claim Gift Aid begins. If your PTA is based in
England or Wales and currently has an income in excess of £5,000
per annum, then you will also need to register with the Charity
Commission for England and Wales. Click here for more information on charity
registration. If your PTA is based in Scotland, you need to apply
to the Office of
the Scottish Charity Regulator (OSCR). In Northern Ireland
there is currently no requirement to register with the Charity
Commission, so PTAs should simply apply to HMRC.
How do we get started?
Firstly you'll need to ask eligible parents and other supporters
to confirm that they are UK taxpayers. The next step is to have
them complete and sign a Gift Aid declaration form, which you
should then keep on file. This form needs to include the donor's
full name and address and the name of the PTA. Make this explicit
to donors by explaining that you can't receive Gift Aid without
this information. You only need to ask your supporters to complete
one form as this provides cover for every gift made to the same
charity, for whatever period the parent chooses and can cover gifts
they have already made and/or gifts they may make in the future.
More information and a sample declaration form is available from hmrc.gov.uk.
How does your PTA claim Gift Aid?
In April 2013 a new 'Charities Online' service came into effect.
This allows PTAs to register to make Gift Aid repayment claims
online, reducing administrative burdens, saving postal costs and
speeding up the process. Click here to learn how to sign up and use
What is the Gift Aid Small Donations Scheme?
The GASDS is designed as a top-up to Gift Aid for those
donations where it is difficult to get a declaration from a donor,
e.g. bucket collections passed around at a school concert.
Charities can claim a payment on donations of £20 or less, for up
to £5,000 a year. Cash donations will need to be paid directly into
the charity's bank account. PTAs will need to be claiming Gift Aid
already to make use of the GASDS and must have at least two years
good claims history. A Gift Aid claim will need to be made in the
year you make a GASDS claim. Complete the same forms as for Gift
Aid, using the Charities Online claiming system - tell HMRC how
much you are claiming and the year donations were collected. That's
it - no need to provide donor information. For full terms, visit hmrc.gov.uk.
The HMRC website has guidance on completing Gift Aid declarations.
The above is intended as guidance only. We
recommend that you contact the relevant organisations with specific
reference to insurance, legal, health and safety and child
protection requirements. Community Inspired Ltd cannot be held
responsible for any decisions or actions taken by a PTA, based on
the guidance provided.
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