The End of Summer, Ice Cream, and… Gift Aid?!

Jon Dell
Oct 1
2 min read

Ah, September. The smell of BBQ smoke has finally lifted from the air, the paddling pool has been deflated (but only after spending three weeks as a mosquito breeding ground), and suddenly your sunglasses don’t feel like a daily necessity but an act of wild optimism.

Yes, summer is over. Which means two things:

We’re all Googling "cheap winter sun holidays."
It’s time to think about Gift Aid and your tax return.

(Bet you didn’t expect that plot twist, did you?)

What Even Is Gift Aid?

Picture this: you donate £100 to your favourite charity. Thanks to Gift Aid, the government adds an extra £25, like a bonus scoop of ice cream you didn’t order but are very grateful for.

But here’s the catch - that free scoop only works if you’re a UK taxpayer. And if you’re one of the lucky souls who donates regularly (good on you!), HMRC wants to know about it.

A Worked Example: The Generous Higher-Rate Taxpayer

Let’s imagine Sam, who pays tax at the higher rate of 40%.

Sam donates £100 to charity.
The charity claims £25 from HMRC under Gift Aid.
Total the charity receives: £125 (Sam’s £100 + HMRC’s £25).

Now here’s where it gets interesting for Sam:

The £125 is treated as Sam’s gross donation.
At the basic rate (20%), HMRC has already given the charity £25.
But Sam pays tax at 40%. That means Sam can claim back the difference - another 20% of £125 = £25.

So, Sam’s actual cost of donating £100 is:

👉 £100 (donation) - £25 (tax relief) = £75

The charity is still £125 better off, but Sam gets a little reward for their generosity. It’s like buying a round of drinks and finding out someone else covered your nachos.

So, When Does Gift Aid Go in a Tax Return?

You’ll need to declare Gift Aid donations on your tax return if:

You pay higher or additional-rate tax (over the basic rate of 20%).
You want to carry donations back to the previous tax year. (Yes, tax can time-travel. Move over, Doctor Who.)
Your donations exceed the tax you’ve actually paid - in which case, HMRC will want a word.

Summer’s Gone, But the Deadline Looms

Think of your tax return deadline (31st January for online submissions) like the end of the school holidays. It feels ages away in September - plenty of time to laze around, ignore the homework, and eat crisps in front of Netflix.

But suddenly it’s January, your Christmas tree is still up out of sheer defiance, and you’re frantically trying to remember if that JustGiving sponsorship for your mate’s half-marathon needs to be declared. (Answer: yes, if it was under Gift Aid and you’re higher/additional-rate taxpayer).

Final Thoughts (Preferably With a Pumpkin Spice Latte)

So, as the evenings get darker and the flip-flops get shoved into the cupboard, spare a thought for Gift Aid. It’s a brilliant way to help charities squeeze extra money out of your donations - and, if you do it right, you might even squeeze a little back from your tax bill.

And hey, unlike summer, that’s something worth looking forward to. 🌦️