Gift aid for schools - getting what you can

Tuesday, 13 September 2011 00:00

HM Revenue and Customs (HMRC) have recently issued a useful guidance note (see link below) aimed specifically at schools and other educational organisations run by charities, including those who support schools such as PTAs with charitable status, to help them make the most of their donations.

To claim Gift Aid repayments the charity must apply to HMRC for recognition as a charity entitled to claim UK charity tax reliefs. Assuming that HMRC agree that it meets the criteria, the charity will then be issued with a special reference number under which Gift Aid can be claimed.

A Gift Aid donation must be made voluntarily and with no strings attached. So fees for tuition, school trips or entrance fees for school performances and events do not qualify. The guidance contains a helpful section setting out the type of scenarios which a school may come across and how Gift Aid may be used effectively. http://www.hmrc.gov.uk/charities/gift_aid/rules/school-charities-ezine.pdf

But note that the guidance says that donations made by companies are not eligible for Gift Aid "as the company may be able to get tax relief themselves". This is rather misleading as companies (especially those owned by the charity) can usually claim tax exemption for Gift Aid payments. The point here is that the charity cannot then recover further tax on those payments.

Companies and charities concerned about Gift Aid would be well advised to seek clarification from our Charities and Schools team on 01392 207020 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it