Tax efficient giving
Please note: the tax consequences of your donations should be discussed with your financial adviser as EIA UK cannot advise you on your personal circumstances.
To donate your unwanted shares to EIA UK please visit ShareGift and nominate the Environmental Investigation Agency UK, UK Registered charity no. 1182208
For information on gifts of shares and associated tax relief.
UK tax payers and Gift Aid
Gift Aid allows charities like EIA UK to claim the basic rate of tax on donations received from UK taxpayers. The basic rate of income tax is currently set at 20%. This is how it works:
- Suppose you give EIA UK £10,000
- EIA UK is able to reclaim from HMRC (Her Majesty’s Revenue and Customs) the basic rate tax you will have paid on the income you have donated to EIA UK.
- This is calculated as 20% of £12,500 (the gross amount of your gift), i.e. £2,500
- The total that EIA UK receives is therefore your £10,000 plus £2,500 Gift Aid, i.e. £12,500
Declarations can be given in writing, either by post or email, by phone and when making a donation online. If you have not yet made a Gift Aid declaration to EIA UK, please call or email us confirming you are a UK tax payer and we’ll send you a Gift Aid Confirmation letter.
UK Payroll Giving
Not only is Payroll Giving super simple, but it’s also tax effective. How come? Because your donation gets deducted before you pay the taxman:
|Cost to you as a 20% tax payer||£4||£8||£16|
|Cost to you as a 40% tax payer||£3||£6||£12|
To get started, simply contact your employer to ask if there is a payroll giving scheme set up at your workplace. Some employers will even match your payroll-giving donations!
Higher Rate Tax Payers
Gift Aid also allows higher tax rate payers to claim tax relief for themselves through their tax return, in respect of the tax they have paid over and above basic rate tax. The higher rate of tax is currently 40%. This is how it works:
- Suppose you give EIA UK £10,000
- EIA UK reclaims Gift Aid as above, so your gift is now worth £12,500
- In addition, you can also claim higher rate tax relief for yourself.
- This is calculated as 40% (the higher rate) minus 20% (basic rate) of £12,500 (your gross donation), i.e. £2,500
- So, in effect, your gift, which is worth £12,500 to EIA UK, has only cost you £7,500.
Additional Top Rate Tax
Similar considerations apply for people on the highest incomes, who pay tax at the top rate. The tax relief works in exactly the same way and reduces the net cost even further.
Carrying Back Gift Aid Donations To The Previous Tax Year
It is possible for Gift Aid donations to be treated as being paid in the previous tax year – providing you paid enough tax that year to cover both any Gift Aid donations you made that year to any charities and Community Amateur Sports Clubs (CASCs) you donate to, and the donations you want to backdate.
Claiming Gift Aid On Donations Made In Past Years
It is also possible for EIA UK to reclaim tax paid on donations before this tax year – providing you paid enough tax in the year in question to cover the Gift Aid on a donation for which EIA UK, and any other charities and Community Amateur Sports Clubs (CASCs) you donate to, is making a tax claim.
For further information on Gift Aid HMRC guidelines about Gift Aid.
US Foundations and individual US tax payers
EIA UK is delighted to announce that we have recently established a Designated Fund with NPT Transatlantic for our US donors. Gifts made to EIA UK via NPT Transatlantic are recognised for both UK and US tax purposes simultaneously (or either US or UK). NPT Transatlantic is recognized by HMRC as an independent UK charity (charity number 1153376) and is recognised by the IRS as a disregarded entity of the 501©(3) public charity National Philanthropic Trust in the United States (EIN 23-7825575). US donors who wish to make single one-time gifts to EIA UK can donate by completing this form.