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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