What Happens if You Gift Aid but Don’t Pay Tax?
If you’ve made a Gift Aid declaration but don’t pay enough UK tax, you’re responsible for paying HMRC the difference.
The test covers the whole tax year. Your tax must at least cover the Gift Aid claimed by every charity you’ve given to that year, not just one.
If your circumstances change, for example when you retire, tell the church or charity so they can stop claiming. They’ll cancel your declaration from that date. You can sort out any shortfall for earlier gifts with HMRC, usually through your tax return or by contacting them directly.
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More questions about Gift Aid
- What Can a Church Claim Gift Aid On?
- What Are the Rules for Gift Aid?
- Who Has to Repay the Gift Aid if the Donor Has Not Paid Enough Tax?
- Is There Any Downside to Gift Aid?
- Is a Church Classed as a Charity?
- How Does HMRC Know About Gift Aid?
- Can I Claim Gift Aid on Small Donations?
- What Donations Are Not Eligible for Gift Aid?
- Do Churches Have to Declare Donations?
- What Is the Gift Aid Small Donations Scheme (GASDS) for Churches?
- How Much Gift Aid Can You Claim on a Donation?
- What Should Be on a Gift Aid Declaration?
- How Long Does a Gift Aid Declaration Last?
- How Do I Make a Gift Aid Declaration Online?
Sources
These answers summarise official guidance. They aren’t legal or tax advice, so check anything you’re unsure about.