Gift Aid (UK)iMIS Gift Aid allows UK charities to recover tax on Gift Aid donations, adding a significant percentage to the value of a gift at no cost to the donor . In iMIS you can:* Record and manage your donors' Gift Aid declarations.* Generate data for Gift Aid tax refunds.* Create tax refund reports for HM Revenue & Customs (HMRC). How Gift Aid works Let's say Paul earned £1000 last month. Assuming he regularly pays income tax on his earnings at the basic rate of 20%, £200 of tax was deducted from his pay and Paul took home the remaining £800 in his salary. In other words, £25 has been deducted from tax for every £100 Paul took home in compensation: (£200 tax / £800 take-home compensation) x £100 = £25. Paul then makes a donation of £100 to your charity. If Paul completes a Gift Aid return, you can get back the £25 he paid in tax on this £100 donation. So, in total, your charity receives £125 (£100 donation + £25 tax refund ) at no additional cost to Paul. Changes to Gift Aid from 6 April 2008 From 6 April 2000, charities can claim Gift Aid relief on the basic rate of income tax on all donations received, provided that the individual donor has consented and that the donation was entitled to tax relief. The basic income tax rate has been set at 22%. From 6 April 2008, the basic rate of income tax changed to 20%, reducing the amount of Gift Aid relief available to charities. However, the Government has established a period of transitional tax relief which will run from April 2008 to April 2011. During this transition period, charities can claim 20% Gift Aid relief on donations, and HMRC will cover the remaining 2%. you do not need to make a special request for the transitional period...... middle of paper ......st be excluded from a tax refund as they are already tax efficient, i.e. the tax refund is managed by the organization ( e.g. CAF) which issues the voucher. If you accept donations through these payment methods, you must create cash account codes for them and exclude these cash account codes from your refund to avoid the tax being refunded twice.o Categories: List all custom billing categories that you set in iMIS. Billing categories appear in the list only if you have enabled Use Billing Categories in iMIS and have created categories.o Customer Types: Lists iMIS customer types. Excluded customer types do not appear in tax refunds. For example, you should exclude customer types that relate to non-individual contacts, such as companies or charities. Gift Aid can only be requested against donations from individual supporters.