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Gift Aid Frequently Asked Questions

1.    What is Gift Aid?

Gift Aid is a scheme which allows charities to reclaim the tax you have already paid through income tax or capital gains tax, on any donations you make. When you donate a bike and sign up for Gift Aid we are able to claim an extra 25% on top of the net sale value of the bike. So if the net sale value of the bike is £100 we can claim £25 from the government. 

2.    Why do I have to agree to the Agency Agreement?

This gives Life Cycle UK the authority to reclaim tax from HM Revenue & Customs on your gift. By agreeing to the agency agreement, you are confirming that you understand this.

3.    How do I know if I’m a taxpayer?

You are a UK taxpayer if:
•    You pay income tax on paid employment, meaning tax is removed from your wages before you receive them. 
•    You pay income tax on a private pension scheme, meaning tax is removed from your pension before you receive it. 
•    You pay tax on savings, a pension plan or an invested income
•    You have recently paid capital gains tax on the sale of a property or shares, or you expect to pay it in the near future
•    You have had to fill in a self-assessment form to pay tax

4.    I’m not a taxpayer but my partner is. Can I still Gift Aid? 

Unfortunately, we are only able to accept bike donations from individuals who fit into one of the categories listed under question three. We would therefore advise that whoever is the taxpayer fills in our form. 

5.    What if I’m a pensioner?

You might still pay tax on a private shares pension scheme or savings account. Or you may pay capital gains tax if you sell a property or shares. Please check with your financial advisor if you are unsure. 

6.    What if I’ve agreed to Gift Aid a donation to another charity?

You can support as many charities as you like through Gift Aid. However, we are each required to collect a declaration from you, and it is your responsibility to ensure you are paying enough tax during the year to cover all annual donations.

7.    How do I remove my consent for you to claim Gift Aid?

You can remove your permission for us to claim Gift Aid at any time. If you would like to do this then you need to get in contact as soon as possible by writing to us or sending an email to the contact details here: 
Address: Gift Aid Services, Life Cycle UK, Create Centre, Smeaton Road, Bristol, BS1 6XN.
Email: giftaid@lifecycleuk.org.uk

8.    Can I sign up online?

Yes through this link: https://form.jotformeu.com/LifeCycleUK/donate-a-bike

9.    Where can I find more information about Gift Aid?

You can find more information through the HM Revenue and Customs website https://www.gov.uk/donating-to-charity/gift-aid

10.    Why do you take a commission?

We charge a small fee of £16.47+VAT of the total sale price of all bikes sold to cover the costs of refurbishment and of managing our Gift Aid systems. This also ensures we only claim Gift Aid on the donated bike and not the refurbished or new parts that might have been added prior to sale. 

 

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