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ONE OF THE WORLD’S GREAT BRIDGE CLUBS
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Gift Aid

 

What Is Gift Aid?

Gift Aid is an income tax benefit designed to benefit charities. As the Young Chelsea Bridge Club Limited (“YCBC”) is now a registered charity (no. 1158813), we qualify for this benefit.

 

Under Gift Aid, the YCBC may claim a tax refund when it receives a payment for membership fees or any other donation from you.

 

You must have paid sufficient Income Tax in order to cover the tax refund on all charitable donations which you make in a tax year. E.g., if you make total annual donations of £400 to all charities, you would need to pay at least £100 of income tax for your donations to qualify for Gift Relief.

 

 

How Gift Aid Works

Tax Relief for the YCBC

  • A payment made under Gift Aid is treated as if it has been received by the YCBC net of 20% tax.
  • The charity is then able to reclaim that tax.

 

If you make a membership fee payment of £60, the YCBC can reclaim an additional £15 (£60 × 20 ⁄ 80) from HMRC giving a total receipt for the YCBC of £75.

 

Tax Relief for You

  • There is no downside for you in Gift Aiding the payment—it can never result in you paying more tax.
  • If you pay tax at 20%, you will receive no further tax relief as a result of making a Gift Aid payment.
  • If you pay tax at 40% or 45%, you will be able to claim a small amount of tax relief if you submit a tax return (however, there is no obligation either to submit a tax return or to claim this tax relief).

 

If you are a 40% taxpayer, if you submit a tax return, you can reclaim £15 on a membership payment of £60, giving a net cost to you of £45.

 

 

So in summary, as long as you have paid sufficient income tax to cover the tax refund to be reclaimed, there is no downside for you.

 

If you have any further questions on Gift Aid, please speak to Paula Leslie either at the club or by email to paula2012leslie@gmail.com.

 

 

Page last updated 27 August 2017

ONE OF THE WORLD’S GREAT BRIDGE CLUBS