Gift Aid – Small Donations Top-up Scheme…Will you be eligible?


As you may be aware, a new Gift Aid “Top-up” scheme is being introduced from 6 April 2013, which will enable charities to claim a top-up payment from HMRC on small donations of <£20 without having to fulfil the normal Gift Aid requirements on these donations. The maximum total value of donations which can be claimed for in one tax year is £5,000, which would result in a maximum refund of £1,250, based on the current basic rate of income tax. The total value of donations on which the top – up can be claimed is, however, restricted to an amount equal to ten times the normal Gift Aid donations in the same year.  So, if your normal Gift Aid claim for the year is < £500, you will not be able to claim the maximum £5,000, even if you have received that amount in small donations.


The Government has only recently announced the details of the scheme and there are a number of  hoops which need to be jumped through. These may need action to be taken very soon if charities who do not currently make regular Gift Aid claims, want to be able to participate as early as possible.


The main conditions are:


– The charity must have existed for 2 full tax years prior to the first year in which a claim is made.

– The charity must have made successful normal Gift Aid claims in 2 out of 4 of the previous tax years before the year in which the claim is made and must have a clean claims record

This means, for example, that if a charity wishes to make a claim for 2013/14, it must have made a normal Gift Aid claim in 2 of the last 4 tax years. Otherwise it will have to wait until at least 2014/15.


The 2012/13 tax year ends on 5 April 2013!  If you have not made 2 claims in the last 4 years, it is not too late to take action.


– If a charity has received any donations from individuals in 2012/13, which could qualify for Gift Aid, it should make sure that it is registered as a charity with HMRC and that Gift Aid declarations are in place to enable it to make a claim for 2012/13.

– If not, could a donation(s) still be made between now and 5 April?

If you would like any further advice, please contact:

Tracey Johnson, 01772 821021

Christine Wilson, 01772 821021

Tracey Richardson, 01539 729727