Gift Aid guide

Gift Aid tax relief calculator

Use this page when charity giving is one of the levers you want to test against ANI. HMRC says Gift Aid donations reduce ANI by the grossed-up amount, which is why they can matter for the £100k tax trap and the Child Benefit charge.
Grossed up for ANIUseful for £100k and HICBC planningBest paired with the ANI calculator

Who this helps

What the Gift Aid page helps you check

This guide is for taxpayers who already know the donation amount and want to see why Gift Aid can be relevant for ANI rather than just general charitable relief.

Why Gift Aid can matter more than the donation amount suggests

HMRC grosses Gift Aid donations up for relief calculations. That means the threshold effect is larger than the cash leaving your bank account. If you are close to ANI thresholds, Gift Aid can be worth checking alongside pension contributions rather than in isolation.

What this helps you decide

Gift Aid is tested on the gross amount

HMRC says every £1 of Gift Aid donation is treated as £1.25 when you work through the ANI reduction.

The threshold effect can be bigger than expected

A donation can reduce ANI, not just give charitable relief, which is why it is relevant for HICBC and Personal Allowance taper checks.

It is not the same as salary sacrifice

Gift Aid can reduce ANI, but it does not reduce National Insurance in the way salary sacrifice often does.

Use it inside the wider tax baseline

Seedli works best when the donation is tested against salary, bonus, pension, and the broader tax setup in one place.

Common questions

Does Gift Aid reduce adjusted net income?

Yes. HMRC reduces ANI by the grossed-up Gift Aid amount, not just the net cash donation you paid.

Why is a £100 donation treated as £125 for ANI?

Gift Aid donations are grossed up by basic-rate tax. So every £1 donated under Gift Aid is treated as £1.25 when you are calculating ANI.

Can Gift Aid help with Child Benefit or the £100k trap?

Yes. Because Gift Aid reduces ANI, it can help reduce the High Income Child Benefit Charge or move you back below the Personal Allowance taper threshold.

Is Gift Aid the same as salary sacrifice or a pension contribution?

No. They are different relief routes, but they can all reduce ANI. Salary sacrifice may also change National Insurance, while Gift Aid does not.