Who Has to Repay the Gift Aid if the Donor Has Not Paid Enough Tax?

The donor does, not the church. Every declaration explains that the donor must pay any difference if their tax doesn’t cover the Gift Aid on all their gifts that year. They can sort it out with HMRC, usually through a tax return or their tax code.

The church only has to repay if its claim was wrong in the first place. That might be because there was no valid declaration, or the gift didn’t qualify.

That’s why it matters to ask givers to tell you if they stop paying enough tax, for example when they retire. When they do, stop claiming on their gifts from that date, and note the change on their declaration.