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Charitable Donations by an Individual, Sole Trader or Partnership

Previously we covered donations by Limited Companies who have different rules.
Today we’ll look at donations to charity or to community amateur sports clubs (CASCs) by individuals, Sole Traders and Partnerships.


These donations are tax free and are called tax relief.
If you want to donate to a sports club, check if it’s registered as a community amateur sports club (CASC).


To claim back tax you’ll need to keep a record of your donations for at least 22 months from the end of the tax year they’re for.


Gift Aid

Donating through Gift Aid means charities and CASCs can claim an extra 25p for every £1 you give. It will not cost you any extra.
Charities can claim Gift Aid on most donations, but some payments do not qualify.


What you need to do

You need to make a Gift Aid declaration for the charity to claim. You usually do this by filling in a form – contact the charity if you have not got one.
You must give a declaration to each charity you want to donate to through Gift Aid.


Paying enough tax to qualify for Gift Aid

Your donations will qualify as long as they’re not more than 4 times what you have paid in tax in that tax year (6 April to 5 April).
The tax could have been paid on income or capital gains.
You must tell the charities you support if you stop paying enough tax.


Higher rate taxpayers

If you pay tax above the basic rate, you can claim the difference between the rate you pay and basic rate on your donation. Do this either:

• through your Self Assessment tax return
• by asking HM Revenue and Customs (HMRC) to amend your tax code


How to claim

You can pay less Income Tax by deducting the value of your donations from your total taxable income in your Self Assessment tax return.
Do this for the tax year (6 April to 5 April) in which you made the gift or sale to charity.

If you do not complete a tax return, contact HMRC and ask for a P810 form. You’ll need to submit it by 31 January after the end of the previous tax year.
You’ll either get a refund, or your tax code will be changed so you pay less Income Tax for that tax year.


Getting tax relief sooner

In your Self Assessment tax return, you normally only report things from the previous tax year.

But for Gift Aid, you can also claim tax relief on donations you make in the current tax year (up to the date you send your return) if you either:

  • want tax relief sooner
  • will not pay higher rate tax in current year, but you did in the previous year

You cannot do this if:

  • you miss the deadline (31 January if you file online)
  • your donations do not qualify for Gift Aid – your donations from both tax years together must not be more than 4 times what you paid in tax in the previous year


Keep records if you:


MATCH is working hard to keep on top of all the latest news and government support so, as always, feel free to get in touch if you have any queries and we’ll be happy to help.


MATCH Accounting Limited