Red Nose Day 2025: what is Gift Aid, rules, how does scheme work in UK, how much is it, Comic Relief donations

• Gift Aid is a government scheme that boosts donations to charity by 25% at no extra cost
• For every £1 you donate, charities can claim an additional 25p if you're a taxpayer
• You don’t pay extra tax - charities receive the boost from the tax authorities
• It’s a simple way to make your Comic Relief donations go even further and support vital causes

Comic Relief has inspired countless individuals to dig deep and contribute to various causes over the years.

With Red Nose Day here once again on Friday, March 21, did you know you can make your donations go even further without spending an extra penny?

Enter Gift Aid, a simple yet powerful initiative that allows you to increase the value of your donations to charity. Here is everything you need to know.

What is Gift Aid?

Gift Aid is a government scheme designed to boost the value of charitable donations made by taxpayers.

When you make a donation to a registered charity, Gift Aid allows the charity to reclaim 25p for every £1 you donate, at no extra cost to you. This means that a £10 donation can become £12.50 - over time, these extra boosts can add up significantly.

Gift Aid applies to both one-off donations and regular contributions, making it an ideal option for supporting charitable events like Comic Relief. It’s a quick and simple way to ensure that the charity you're supporting benefits even more from your generosity.

How does Gift Aid work?

To make Gift Aid work, you must be a UK taxpayer, and pay income tax or capital gains tax. When you make a donation, you will typically be asked if you want to add Gift Aid to your contribution.

If you agree, the charity can reclaim the tax you've paid on the money you donated. It’s important to note that Gift Aid doesn’t mean that you’re paying any additional tax. You’re simply allowing the charity to reclaim tax that has already been paid.

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In fact, you don’t even need to give extra money; the charity receives the extra amount from the tax authorities.

For example, let’s say you donate £20 to Comic Relief. If you choose to add Gift Aid, the charity can claim an additional £5 from the government, meaning they will receive a total of £25 from your £20 donation.

This 25% boost is significant, and when multiplied across millions of donations, it helps charities raise millions of extra pounds.

Do Gift Aid cost me anything?

No, you don’t have to pay anything extra to use Gift Aid. It’s entirely free for you, the donor.

The key requirement is that you need to be a taxpayer and have paid enough income tax or capital gains tax in the current tax year to cover the amount the charity will claim.

If you’re unsure whether you’re eligible, most charities will explain the rules when you make your donation, so you can decide whether to add Gift Aid.

But if your tax liability is less than the value of Gift Aid being claimed, it’s your responsibility to ensure you don’t opt for Gift Aid, as charities are not allowed to claim more than you’ve paid in tax.

The charity will typically ask you to confirm that you are a taxpayer and that you are eligible to add Gift Aid to your donation.

How much does Gift Aid raise?

Gift Aid is a great way to amplify the impact of your donation, allowing your money to go even further.

In times when charities are looking for new ways to raise vital funds, Gift Aid is an easy and effective way to increase donations without asking the donor for more.

For high-profile events like Comic Relief, Gift Aid is an invaluable resource to maximise the donations that will go towards charitable causes, from supporting health and education initiatives to fighting poverty and inequality around the world.

So, next time you donate to Comic Relief or any other charity, remember to tick the Gift Aid box. It’s a small step that can make a big difference, ensuring that the money you donate goes even further to support those who need it most.

Now that you know how Gift Aid can make your donations go even further, don’t forget to tick the box next time you donate. Have you used Gift Aid before? Share your thoughts or any questions in the comments section.