Fixing broken Gift Aid
Reconnecting the tax relief back to the charities. Most higher rate taxpayers are unaware of the sums remaining unclaimed or even that they can reclaim additional sums. Even if higher rate taxpayers do reclaim their higher rate relief, the connection to charitable giving is broken. Moreover, many transactions that are charitable in nature for tax purposes remain unnoticed or unlogged. Many tickets to venues such as the Tate or Regents Park Zoo are Gift Aid-able and therefore qualify for higher rate tax; regular church-goers will notice they are asked to tick a box on the back of their envelope so the church can reclaim Gift Aid; scout groups and community amateur sports clubs can claim for membership fees. Not many reclaim any higher rate tax due to them and potentially available for donation.
For example, a scout group has 60 members each paying £100/year membership fees. This totals £6,000 and Gift Aid would provide an additional £1,500. If half of the payers were higher rate taxpayers this could result in an additional tax relief payment of £750 or 10%. We aim to fix this by logging every transaction that triggers a tax-relief ‘event’, giving the donor the option to re-donate this sum, and ensuring this tax is reclaimed from HMRC.
We believe you should choose where your income goes, not the Treasury.