Tax Efficient Giving

By giving tax-efficiently to Mercy Ships you can make your donations go further. There are several ways that you can do this:

Gift Aid
Under the Gift Aid scheme, for every pound you give to Mercy Ships, from 6 April 2008 we will receive an extra 25p from HM Revenue & Customs at no extra cost to you. For example, if you donate £10, we can reclaim £2.50 from the tax-man. The amount we can now claim as Gift Aid tax relief is less because with effect from 6 April 2008 the basic rate of tax has reduced from 22p to 20p. But to ease the burden on charities and give them time to plan for the future, the government has introduced a transitional relief (a supplement of 3p) to top up the amount we receive.

So, until 5 April 2011, we will receive the same amount as if the basic rate of tax had not changed.

Anyone who is a UK taxpayer can make donations under the Gift Aid scheme, as long as you have paid enough tax to cover the amount of tax which Mercy Ships will reclaim against your donations. The tax paid by you may be income tax, capital gains tax or tax credits on UK company dividends. Tax years start on 6 April and run until 5 April the following year.

What’s more, a single enduring declaration will cover all future donations that you make to Mercy Ships and will enable us to reclaim tax on any donations you’ve made for the six years prior to the date of your declaration.

What do I need to do?
Just complete the gift aid declaration whenever you make a donation to Mercy Ships. Alternatively, you can download a declaration here and return it to Mercy Ships.

What if I’m a higher-rate taxpayer?
Unfortunately Mercy Ships cannot claim the additional tax you pay. But if you are a higher-rate taxpayer who makes donations through Gift Aid, you can claim back the difference between the higher rate of tax at 40 per cent and the basic rate of tax at 20 per cent on the total value to Mercy Ships of your donation(s) (the 'gross donation').

To reclaim the additional tax relief, you will need to include details of all your charitable donations in your self assessment tax return. If you do not complete a Self Assessment tax return you can contact your tax office and have the higher rate relief reflected in their PAYE tax code.

You may choose to give some or all of this tax relief to Mercy Ships which is also eligible for Gift Aid.

Click here to find out how you can donate all or part of any tax rebate to Mercy Ships

Legacies
One way to limit your estate’s exposure to inheritance tax is to leave some money to Mercy Ships, which will be tax free. Such legacies are paid before inheritance tax is deducted, reducing the amount of tax paid on the estate. Click here for more information about Legacy Giving to Mercy Ships.

Share Giving
When you give shares to Mercy Ships, you can get substantial relief on your income tax bill, as well as exemption from Capital Gains Tax. Click here for more information about Share Giving to Mercy Ships.

Payroll Giving
Did you know that you can make tax-free donations through your salary? Click here for more information about Payroll Giving to Mercy Ships.

For further information or assistance, please contact the fundraising department on 01438 727800, or email fundraising@mercyships.org.uk