What is a Gift Aid Declaration?
A Gift Aid declaration is a formal statement from a UK taxpayer confirming they pay enough income tax or capital gains tax to cover the tax relief a charity can claim on their donation. When completed, charities can claim an extra 25p for every pound given, turning a £1 donation into £1.25 without asking the donor for more money.
How Gift Aid Works
Gift Aid is a UK government scheme that tops up charitable donations with tax relief. When you give £1 to a church, the church can claim 25p from HMRC, making your donation worth £1.25 total. This works because the charity reclaims the basic rate tax (20%) you've already paid to the government. To claim, the donor must confirm they are a UK taxpayer and give permission in writing. The church then submits these declarations to HMRC Charities Online. An estimated £560M in Gift Aid goes unclaimed by UK churches every year, often because declarations are lost, forgotten, or never collected in the first place.
Who Can Make a Gift Aid Declaration?
Only UK taxpayers can claim Gift Aid. You must pay enough income tax or capital gains tax in the current tax year to cover the tax relief the church will claim. Most people who work and pay tax through PAYE, or who are self-employed, qualify. You cannot claim Gift Aid if you are a non-resident, a non-taxpayer, or if your tax bill is lower than the relief being claimed. Non-UK citizens and children typically cannot make valid declarations unless they pay UK tax.
What Information Does a Declaration Require?
A Gift Aid declaration needs the donor's name, address, postcode, and confirmation that they are a UK taxpayer. Some declarations also capture email or phone number so the church can contact the donor if HMRC queries the claim. The donor must tick a box or sign to confirm the information is correct. Givr by MRVL captures all this in a simple browser form that appears after a congregation member scans a QR code and enters their donation amount. The declaration is stored securely and submitted to HMRC automatically.
How Long Does a Gift Aid Declaration Last?
A Gift Aid declaration is valid for four years. After four years, the church must ask the donor to make a new declaration if they want to continue claiming Gift Aid on donations. If the donor's circumstances change (for example, they move house, stop paying tax, or move abroad), they should update their declaration. Many churches ask for a fresh declaration every year to keep records current and reduce the risk of HMRC disputes.
Why Churches Struggle to Claim Gift Aid
Churches often miss out on Gift Aid because collecting and submitting declarations is manual and time-consuming. Paper forms get lost, contact details are illegible, and the HMRC submission process itself requires someone to log in to Charities Online and upload files. Givr removes this friction: congregants complete declarations in seconds via QR code, and the Gather tier automatically submits them to HMRC on your behalf. This means churches reclaim Gift Aid without the administration burden.
Gift Aid vs. Small Donations Scheme
The Small Donations Scheme (GASDS) lets churches claim Gift Aid on donations under £20 without a written declaration, up to £6,000 per year. However, this only works if you cannot identify the donor. If you know who gave, you should collect a Gift Aid declaration instead because the relief is unlimited. Givr supports both Gift Aid declarations and GASDS claims in the Gather tier, so you can mix and match depending on whether the donor is identifiable.
Start claiming Gift Aid automatically for your church with Givr.
Frequently asked questions
Can I make a Gift Aid declaration for someone else?
No. Gift Aid declarations must be made by the actual donor and must be their own commitment that they are a UK taxpayer. Proxy declarations are not valid with HMRC.
What happens if I make a false Gift Aid declaration?
Making a false declaration is tax fraud. You could face penalties, fines, or prosecution. Always declare truthfully - you only qualify if you genuinely pay enough UK tax to cover the relief being claimed.
Do churches have to claim Gift Aid?
No, but they should. Gift Aid is free money from the government and adds 25% to every eligible donation. It requires minimal effort with the right tools like Givr.
How does Givr submit Gift Aid to HMRC?
Givr's Gather and Grow tiers automatically collect Gift Aid declarations from congregants via QR code and submit them to HMRC Charities Online on your behalf. You don't need to log in or upload files manually.
What does Givr charge for Gift Aid claims?
Givr charges a 2% performance fee on the amount of Gift Aid claimed, invoiced after HMRC processes the payment. This only applies to successful claims, so you only pay when you actually receive the relief.