Shopping cart

Your shopping basket is empty. View the shop here

Supporting Merton: Tax-efficient Giving

If you are a UK tax payer, by using one of many tax-efficient methods explained below, your gift to Merton can become worth even more. (If you are not a UK taxpayer, find out how you can make a gift to Merton).

For example, by using the gift-aid scheme, or GAYE, it's possible that the value to Merton of your gift will be over 65% greater than the cost to you of making the gift.

The Gift Aid Scheme

How does it Work?

If you are a UK taxpayer, and you complete a Gift Aid Declaration form, we can reclaim tax so that the value of your gift to Merton increases by over 25%.

Example

  • Mrs X donates £1000 to Merton
  • Merton reclaims tax of £250 (since £1250 income is worth £1000 after being taxed at the basic rate of 20%)

Furthermore, if you are a higher rate taxpayer, you can reclaim an additional portion of tax, by completing the section on Gift Aid payments in your Self Assessment tax return. If you do not complete a return you can give the details on form P810 Tax Review which is available from your tax office. For more information, please see the HM Revenue and Customs pages about Gift Aid.

Example

  • Mrs X donates £1000 to Merton
  • Merton reclaims tax of £250 (since £1250 income is worth £1000 after being taxed at the basic rate of 20%)
  • Mrs X can reclaim tax of £250 (which is equal to (40-20)% of £1250)
  • So the value to Merton of Mrs X's gift (£1250) will be over 65% greater than the net cost of making the gift (£750)

Here are some more numerical examples:

Donor's (net) gift Tax reclaimed by Merton Tax relief for donor (only if donor is higher-rate taxpayer) Total (gross) value of gift to Merton Total (net) cost of gift to the donor after tax relief (only if donor is higher-rate taxpayer)
£1000 £250 £312.50 £1250 £687.50

How do I do it?

As a donor, you simply need to complete a Gift Aid Declaration form provided by Merton once at the time of your first donation. If you have already given to Merton, but have not signed a Gift Aid Declaration form, you can do so at any time, and we can then reclaim tax on gifts made in the past four years.

The income tax relief would be claimed by completing the relevant section in a Self Assessment Tax Return, or if you pay tax by PAYE, writing to your tax office. Please see HM Revenue and Customs pages about Gift Aid.

Gifts of Shares and Securities

How does it Work?

If you donate shares or securities to Merton, the gift is exempt from Capital Gains Tax. Furthermore, for certain qualifying gifts you can also claim income tax relief equal to the net value of the shares to the charity on the date of the gift. Donors can claim the tax relief in their tax return.

What sort of investments qualify?

  • Shares and securities listed or dealt on a recognised stock exchange – in the UK or elsewhere
  • UK Authorised Unit Trust Units
  • UK Open-ended investment company shares
  • Certain foreign collective investment scheme holdings
  • Land, buildings and other valuable assets may also qualify

How do I do it?

If you are interested in donating shares to Merton, please contact the Development Director.

The income tax relief would be claimed by completing the relevant section in a Self Assessment Tax Return, or if you pay tax by PAYE, writing to your tax office.

Give As You Earn

How does it Work?

Give As You Earn (GAYE), the largest Payroll Giving scheme, enables you to give tax-free to Merton regularly directly from your pre-tax salary or pension. This means that:

  • If you are a basic rate tax-payer and donate £10 per month to Merton via this scheme, each gift of £10 comes from your pre-tax salary, so it will cost you only £8.00, yet Merton receives the full £10.
  • If you are a higher rate taxpayer, this gift of £10 will only cost you £6.

Examples of GAYE monthly donations to Merton:

Employee's monthly gift to Merton Cost to basic rate taxpayer (at 20%) Cost to higher rate taxpayer (at 40%)
£10 £8.00 £6
£12.50 £10 £7.50
£17.50 £14 £10.50

How do I do it?

Ask your employer or pension provider whether they operate GAYE or an alternative Payroll Giving scheme.

If they do, you'll need to complete a mandate form (for the Payroll Giving agency – in the case of GAYE, this is the Charities Aid Foundation) giving details of how much and how often you want to give to Merton (and/or other charities).

The Payroll Giving agency then simply tells your employer/pension provider how much to deduct each month.

Learn more from the Tax Office site.

Giving through Self-Assessment Tax Return

How does it Work?

If you complete a Self Assessment Return and are entitled to a repayment you can choose to have all or part of it sent directly to Merton. You can also ask that the repayment is made as a Gift Aid donation. HMRC will send your refund (plus any Gift Aid repayment where applicable) directly to your charity by electronic transfer.

How do I do it?

On your Self Assessment Tax Return, you’ll need to enter Merton College's Registered Charity No. 1139022

For more details, please visit the Tax Office site.