A question about Gift Aid. Can anyone answer it?

[AGentleMusing]

I remember when I first started working, many moons ago, having gift aid explained to me - if you're a UK tax payer, the organisation can claim back the tax on the entrance fee at no cost and no impact to you.

In recent years, I've noticed that there are often (always?) two entrance fees now advertised. The standard non gift aid and the gift aid entrance fee which is often more expensive.

Firstly, has it always been this way? I don't think it has.

Secondly, why is it? If the only point of gift aid is that the NT or wherever can claim back the tax on that fee, why is it more expensive?

Thank you! 😊

MSE
I read this and am still confused (admittedly tired and hungry on a bus)

Generally if just one entrance fee, they can’t claim gift aid- the fee is a payment to enter, not a donation. So they offer two prices- one which is just the entrance fee and another which is fee + donation, then claim the gift aid on the donation part. Strictly they have to offer both rates or it’s arguable that the donation element isn’t actually a donation.

Bigger charities tend to do it this way as they’re more likely to have had legal advice.

Surely, that just deters people from gift aiding then?

I'm not being funny but a lot of entrance fees are already quite expensive. I'd imagine lot of people just opt to pay the lower non gift aid fee in that case. After all, it's not compulsory that you do.

I went somewhere last week and they gave a price and said "that includes an optional donation, is that ok?"
I said no problem, yes and they said "is it ok if we reclaim giftaid on your donation" and when I said yes it wasn't then any more money.
So as PP said it's with or without donation, and then you can gift aid the donation at no extra cost.

Thanks for the explanations. I read the MSE page and it didn't quite answer my question.

But thank you.

Perhaps better legal advice is why places have started advertising the two prices. I'm still confident that there used to only be the one price though.

Gift aid cannot be claimed against a standard admission fee

But if a donation is made then gift aid can be claimed against the donation.

If a higher amount of 10% more is charged then that can be counted as a ‘donation with free entry’ and gift aid can be claimed on the full total

www.visitengland.com/sites/default/files/rules_on_gift_aid_for_charitable_attractions_updated_version_jan_15.pdf

Sure. But there is no way round it- if there’s only one rate, it’s not counted as a donation. Better that some people make a donation than none.

You also have to pay enough in tax to cover the amount they claim back in giftaid, otherwise you are liable for that amount. So if you aren't a UK taxpayer, or you don't pay tax you cannot be used for giftaid.

Yeah, I understand how gift aid works in that respect, I just didn't know why there are (now) two prices.