Understanding and promoting tax return donations

Anyone completing a Self Assessment tax return can donate some or all of their tax refund direct to your charity without having to wait to receive the refund from HM Revenue & Customs (HMRC).

This is a simple and effective way to raise money for your charity. The donation is paid straight into your back account by HMRC, along with any Gift Aid repayment that applies. You don't have to do any extra paperwork to claim the Gift Aid back, it's all done by HMRC. All you need to do is apply to HMRC for a charity code number - a reference number unique to your charity - so that you can receive donations through HMRC's Self Assessment Giving scheme, known as SA Donate.

On this page:

What is Self Assessment Giving?
The benefits of Self Assessment Giving
How donors use Self Assessment Giving
How your charity can join SA Donate
Contacting the HMRC Charities Helpline
More useful links

What is Self Assessment Giving?

If any of your donors complete a Self Assessment tax return and they are due a tax refund, they can give some or all of this repayment direct to your charity. To get this money, your charity needs to be registered to receive payments under the 'SA Donate' scheme. See the section 'How your charity can join SA Donate' below.

People complete Self Assessment tax returns for various reasons - for example the self-employed, or someone who has untaxed income.

Find out more about Self Assessment and who it applies to

Using Gift Aid to increase the value of the donation

Donors can also use Gift Aid to increase the value of their gift to your charity by 25 per cent. It doesn't cost them anything, but they must pay enough Income Tax or Capital Gains Tax to cover the tax that your charity will get back from HMRC.

If a donor ticks the Gift Aid box on their tax return, the extra money will be worked out and paid to your charity automatically.

For donations between 6 April 2008 and 5 April 2011, your charity will also get three pence extra for each pound donated. This money will be paid automatically from the government as relief for the reduction in the basic rate of tax from 22 per cent to 20 per cent. You don't have to make a separate claim for it.

Find out more about Gift Aid, how it works, and the benefits for your charity

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The benefits of Self Assessment Giving

For charities

Your charity receives the donation directly into its bank account.
Any Gift Aid donations and tax are paid automatically by HMRC - you don't have to make a separate claim.

For donors

Once they have completed their Self Assessment tax return, they also complete a 'Giving your tax repayment to charity' form.
They can choose to make a donation (including the Gift Aid element) to charity anonymously.
Taxpayers do not have to wait until they receive their refund from HMRC before making a donation to charity.

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How donors use Self Assessment Giving

Donors who complete a Self Assessment tax return and are due to receive a tax refund can choose to have all or part of it sent directly to charity. They can also ask that the repayment is made as a Gift Aid donation.

To do this, they need to put the unique reference code for your organisation in the relevant section of the form SA100 'Giving your tax repayment to charity' so that HMRC can pay the money straight into your bank account.

Make sure your donors know your SA Donate code number. They can use the Charities Search tool on the HMRC website to find it or they can call the HMRC Charities Helpline (see 'Contacting the HMRC Charities Helpline' below).

Go to the 'charities search' tool

Higher rate taxpayers

Higher rate taxpayers can claim additional Income Tax relief on all Gift Aid donations they've made during the tax year, as well as on any gifts of land or shares. Your charity can benefit from the donor's tax relief (as well as from receiving their gift) if the donor chooses to donate any refund due to your charity.

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How your charity can join SA Donate

You can apply to join the scheme using the SA Donate application form (see link below). HMRC will then give you a unique charity reference code.

This reference code:

helps donors to identify your charity (there may be others with names similar to you)
ensures that you receive the donations straight into your bank account
ensures that HMRC can process and pay associated Gift Aid claims straight into your bank account

Send your completed form to:

HMRC Charities
SA Donate
St John's House
Merton Road
Liverpool
L75 1BB

Download the SA Donate application form

Make sure your donors know your code number

HMRC adds the name of your charity and your SA Donate reference code to the list of charities that can accept the donation of a tax repayment from a Self Assessment tax return. This means donors will be able to find your details using the HMRC's Charities Search tool. You can also advertise your reference code in your communications with donors.

Find out more about the 'charities search' tool

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Contacting the HMRC Charities Helpline

For more help you can contact the Charities Helpline on Tel 0845 302 0203 (open from 8.00 am to 5.00 pm, Monday to Friday).

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