Gift Aid

Itsgottabedone

I thought that Gift Aid worked quite simply - the organisation accepting payment from a UK taxpayer can claim back the tax paid from HMRC. So if I (tax payer) and my friend (non tax payer) bought admission tickets we would both pay the same, but the venue would benefit from an additional payment from HMRC in respect of tax I paid.

Why, then do some organisations have different (higher) prices for those participating in Gift Aid? As an example, RHS Wisley admission prices for adults : £11.85 including Gift Aid £10.75 excluding Gift Aid. I would like my tax to be reclaimed by the organisation I'm supporting, but I don't want to be charged a premium to do it!

Can anyone explain to me why different prices apply?

redpete

They can't claim Gift Aid on normal ticket price because this is not a donation, it is just a normal admission ticket. HMRC site says that to qualify for Gift Aid a different arrangement must apply which could be either:

• it is at least 10 per cent more than the normal admission fee
• it allows admission for at least a 12 month period.

Most I have seen do the former - the benefit is that you paying a small amount more gets the organisation GA on the whole amount - so e.g. instead of a normal ticket price of £10 they charge you £11 and claim £2.75 GA - hence your £1 extra gets the organisation £3.75 more money.

Itsgottabedone

redpete wrote: »

They can't claim Gift Aid on normal ticket price because this is not a donation, it is just a normal admission ticket. HMRC site says that to qualify for Gift Aid a different arrangement must apply which could be either:

• it is at least 10 per cent more than the normal admission fee
• it allows admission for at least a 12 month period.

Most I have seen do the former - the benefit is that you paying a small amount more gets the organisation GA on the whole amount - so e.g. instead of a normal ticket price of £10 they charge you £11 and claim £2.75 GA - hence your £1 extra gets the organisation £3.75 more money.

A comprehensive and understandable reply - thanks so much!