Taxation and Gift
Aid
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Taxation (not applicable in
Scotland)
Each individual unit or area of Girlguiding UK
is a separate and independent charitable body. As such, it may
reclaim tax on Gift Aid or tax deducted from investment income.
Some Counties and all Countries and Regions have their own charity
number.
Interest on building society and bank deposit
accounts is normally paid net, ie after deduction of tax. Units
should inform the bank of their charitable status in order to get
the interest paid gross, ie without the deduction of tax. A
certificate of charitable status will normally be required, and
this can be requested from CHQ.
VAT
Charitable status does not mean that there is
any exemption from paying VAT. Units cannot reclaim VAT on any
purchases or expenses; only VAT-registered organisations can do
this.
Gift Aid
Gift Aid is a government scheme to encourage
donation to charities such as Girlguiding UK. It means that the
Association subscriptions are eligible for tax relief and this
could increase your unit funds.
Setting up the scheme does involve some work,
but much of this is a one-off exercise. To make the process as easy
as possible, Girlguiding UK has put together an information pack
explaining what you need to do. This is available from CHQ and is
also available to download here -
Finance and insurance.
NB: Scottish units need to adopt the procedure
outlined in the Scottish Unit Charity Handbook in
conjunction with this information pack.
The information pack includes:
- how to apply for a Gift Aid number for your own unit
- how to keep the necessary records and the filing system
- Gift Aid declarations - advice and guidance on how to get these
signed
- a step-by-step guide to making a claim
- writing an explanatory leaflet for parents
- where to find help - useful telephone numbers and
addresses.
Page last updated: 12/22/2011