Giving to charity
If you live in Jersey and pay income tax you can
give money to charities registered with the Jersey Charity Commissioner using the Jersey Gift Support scheme. The charity will then get an additional 25p for every £1 you donate.
How charities make a tax repayment claim
One-off donations to charity
All you have to do is donate £50 or more and complete a Jersey Gift Support form or use the charity's online giving form.
This is how it works:
- You decide to give £50 to charity
- You complete the details of your donation either online or using the paper form and send this to the charity with your donation
- The charity sends the record of your donation to Revenue Jersey.
- The charity gets an additional £12.50
- When you complete your tax return, enter the details of the donation in the charitable giving section
R10 Jersey Gift Support form
If you pay a regular amount to a charity, for example £10 a month, the donation will qualify as a relevant donation if you donate £50 or more during the year.
You can complete details of your total donations once a year using the Jersey Gift Support donation form, meaning the charity will be able to claim back the tax.
You need to put the details of your donation on your tax return.
R10 Jersey Gift Support form
Jersey Gift Support donation rules
The full rules that apply to these donations are as follows:
- the minimum amount is £50
- you should be liable to pay income tax (see below if you do not pay tax)
- you must be resident in Jersey for tax purposes on the date you make the donation
- it is made in money
- it is not subject to a condition that any part of it can be repaid
- it is not due under a deed of covenant
- it is not part of an arrangement to benefit you, your family or any individual or company connected to you
- it is not linked to the acquisition of property by the charity except by way of a gift
- when added to other lump sum donations by you or persons connected to you, the total does not exceed £500,000 in any one calendar year
Individuals making donations through your payroll
Employee information for donations through payroll
You can make donations to a nominated charity directly from your salary.
If the accumulated amount over the year is £50 or more, the charity will get an additional 25p for every £1 you donate.
It is an easier way to give, as your employer will administer the scheme and you can spread your charitable giving over a year.
- you join an employer who has a payroll donation scheme, so you set up a £10 per month donation direct from your salary from January to December
- the employer sends your donation to the nominated charity in December
- as the donation is over £50, the charity can reclaim the tax
- the charity will receive your £120 plus an additional £30 from Revenue Jersey
Your payroll will still provide your gross income (the amount before the charity deduction) to Revenue Jersey and this is also the amount you must declare on your annual tax return.
You should also enter the details of the donation, along with any other qualifying donations to Jersey charities, on your personal tax return.
Download payroll donation scheme form
Employers information for donations through payroll
When you set up a payroll donation scheme you must ensure that the nominated charity can claim a repayment of tax. Charities that can claim will have a Jersey Registered Charity Number issued by the Charity Commissioner.
When the total collected is given to the charity you must include a schedule with the following information for each employee who has donated:
- tax identification number (TIN)
- amount donated for the year
You are responsible for the administration of the scheme, including keeping records of the donations for 6 years.
If you don't pay income tax
If you are below the tax threshold or exempt from income tax you should not use these schemes, but just pay the charity the amount you want it to receive.
If you do make a payment using the above schemes you will have to pay the income tax amount equivalent to the repayment that the charity receives from Revenue Jersey for the donation.
If a corporate entity makes a donation out of its income using the Jersey Gift Support donation scheme then the following will apply depending on the type of entity.
Zero rated companies
Would be liable to pay the income tax amount equivalent to the repayment that the charity receives from Revenue Jersey. Making a donation using the scheme is therefore not recommended for these companies and they should just pay the charity the amount they want it to receive.
Would be liable for half of the of the amount equivalent to the repayment that the charity receives from Revenue Jersey for the donation. If the company doesn't pay enough income tax in the year that the donation is made, they would be liable for up to the full amount.
No liability would arise on the company for the donation as long as the company pays sufficient income tax to cover the repayment that the charity receives from the donation. If the company doesn't pay enough tax in the year that the donation is made, they would be liable for up to the full amount.
Fund-raising events, collections and sponsorship
These do not qualify for the donation scheme as you are passing on money from other people that you have already collected. It is therefore not your gift.
However, if at the time an individual wants to give the charity you are raising money for an amount under the donation scheme and the donation meets all the rules then they can do this.
The donor must be aware and acknowledge that they are making a payment under the lump sum donation scheme and it is their responsibility to complete the form. You can then pass on the donation to the charity.
If a company sponsors fundraising events organised by local charities and it benefits from the publicity, or in other ways, the payment will not qualify as a relevant donation.
Trusts, estates and partnerships
Trusts, estates or business partnerships can't use the Jersey Gift Support donation scheme. However a business partner, as an individual, can make a donation on their own account.
Filling out your personal tax return
If you've made donations to charities under either a lump sum donation scheme or a deed of covenant, enter the total amount in your tax return that you gave during the year.