Collecting Gift Aid on your donations (UK only)

Updated 3 months ago

If you're a UK-based charity, Beacon does the heavy lifting to make it easy for you to claim Gift Aid on your donations from UK taxpayers.

Watch our short video to learn more about how Beacon makes it easy to manage your Gift Aid.

link How Beacon helps you with Gift Aid

  1. When a payment (e.g. a donation) is added to your Beacon database, we automatically check to see if the payment is eligible for Gift Aid.

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  1. If a payment is eligible, the payment is automatically added to a new "Gift Aid Claim" in your Beacon database. This claim is marked as open - which means that the claim is currently being built up.

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  1. At the end of each month, the open claim as marked as ready to submit. This means that Beacon has finished building up the open claim, and it is ready to be submitted to HMRC.

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  1. Before submitting your claim, you can preview the payments that will be submitted to HMRC. You can download a CSV file with all of the data that will be submitted, including:

    First & last name
    Payment amount & date
    Other info (for overseas and sponorship)

  2. When you're ready to submit your claim, you can submit it directly to HMRC through Beacon. You won't need to login to Charities Online to submit the claim - Beacon communicates with HMRC directly.

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  1. After submitting, we attach a CSV file with a list of all payments claimed, and the raw data (in XML) sent and received to and from HMRC. (Important for audit purposes)

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link What makes a payment eligible for Gift Aid?

Not all payments are eligible for Gift Aid. HMRC have specific rules that determine whether a payment is eligible for Gift Aid, or not.

Beacon only adds eligible payments to claims, so it's important to make sure that payments are stored correctly in Beacon to maximise the amount of Gift Aid you can claim.

Learn more about Gift Aid eligibility here.

link Can donations for sponsored events be claimed through Beacon?

Yes. Learn more about claiming Gift Aid for sponsorships here.

link Can we collect oral Gift Aid declarations through Beacon?

Yes. Learn more about collecting oral declarations here.

link Does Beacon work with the small donations scheme?

Beacon allows you to claim Gift Aid top-up payments on small donations through the Small Donations Scheme (GASDS). Learn more about this here.

link Is Beacon a Gift Aid collection agent?

No. Gift Aid collection agents claim Gift Aid for you, collecting the funds and paying you at a later date (often deducting a fee).

Beacon simply submits payments on your behalf (without taking a fee) as though you had uploaded them to HMRC yourself. Except that with Beacon, you don't have to deal with spreadsheets!

link Why does Beacon need our HMRC login details?

HMRC requires these details from all third-party providers (like Beacon) who submit Gift Aid claims on your behalf. These details are used to securely communicate with HMRC when a Gift Aid claim is submitted.

help_outline We take security really seriously here at Beacon HQ! That's why we add an extra level of encryption when saving your Gift Aid settings. We will never use these details to login to your HMRC account directly.

Unlike "collection agents", Beacon doesn't submit Gift Aid claims for you, we provide tools to make it easy for you to submit a claim yourself.

Note: third-party collection agents like Virgin Money Giving or JustGiving do not require these details, as HMRC has a different integration approach for them. This is not the case for Beacon (and most other charity CRM providers) as we are not a collection agent.

link Where do we find our charity ID?

Your Charity ID is different to your registration number with The Charities Commission. This is HMRC's reference ID, and you'll find it in your Government Gateway account.

  1. Log in to Government Gateway.

  2. Once logged in, click the Claim tax back on donations link:

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  1. In the top-right of the page, you'll see your charity name, and the charity ID:

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link What does the 'Gift Aid allowed?' checkbox do?

All payments have a checkbox for 'Gift Aid allowed?'. This isn't a box for saying a payment will be claimed, it marks whether this payment is eligible in principle. This should be ticked for the vast majority of payments, unless you want to explicitly exclude it from being claimed (e.g. the donor received a substantial benefit for this donation)

For example, if you receive a donation, it should usually be ticked. You don't need to know if the payment is eligible, just that all other things considered it should be checked for eligibility.

Unchecked - This payment will not be claimed, even it it meets all other criteria for being claimed.
Checked - This payment might be claimed, but only if it meets all other criteria for being claimed.

link What happens if we’ve made a mistake on a submitted Gift Aid claim?

If you’ve claimed too much on a previously submitted claim, then you can make an adjustment to your next claim to reflect this.

Let’s say you had duplicate payments and accidentally claimed Gift Aid on a £100 donation twice. You would have claimed a total of £50 in Gift Aid from HMRC, composed of £25 from the real payment and £25 from the fake payment. Before you click submit on your next Gift Aid Claim in Beacon, you will see the opportunity to make adjustments as below:

Gift Aid claim adjustment screenshot

In our Adjustments card, we can enter the amount of our error (in our case, £25) and add any adjustment notes to provide context to HMRC.

If you think you’ve claimed too little this is probably because payments that you thought were Gift Aid eligible didn’t meet Beacon’s requirements.

In this scenario, just find the payments that you think should have been claimed on but haven't and update the information so that it meets the requirements. Once the payments are eligible, Beacon will automatically add them to your next claim.

Check out what makes a payment eligible for Gift Aid to see a list of requirements.

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