Gift Aid

vfish

I fill in a tax return each year for income from property. It's suddenly occured to me that I usually tick the Gift Aid box when visiting the zoo and so on and I've never declared this on the return.

I know I definitely pay enough tax as I work as well but could I get in trouble for not declaring Gift Aid?

Thanks

00ec25

gift aid on the tax return is only for those paying higher rate tax

it enables those who have made gift aid donations to recover money from HMRC if they pay tax at 40% or 50%

if you
a) are not a higher rate tax payer ; or
b) do not want to reclaim

then you do not have anything to worry about if you have not ticked it

Murdina

The above reply is correct but only as far as it goes.

Don't forget that with Gift Aid you do actually have to have paid enough tax to cover that attributed to the payment in the year. This can catch people out especially if they are self-employed and their income fluctuates/they have losses. I have seen more than one client over the years who has had to pay over the tax attributable to the Gift Aid.

If you do a self assessment tax return then you should put all the payments on. It is a good discipline to keep track of them.

zagfles

00ec25 wrote: »

gift aid on the tax return is only for those paying higher rate tax

it enables those who have made gift aid donations to recover money from HMRC if they pay tax at 40% or 50%

if you
a) are not a higher rate tax payer ; or
b) do not want to reclaim

then you do not have anything to worry about if you have not ticked it

But you're still supposed to declare it as I understand it, even if it doesn't make any difference.

As well as higher rate taxpayers, it will make a difference if you claim tax credits, if you have an age allowance and are in the band where it's tapered, or if you don't earn enough to pay tax (then you have repay the tax relief the charity got!).

JustKeepSwimming_2

zagfles wrote: »

But you're still supposed to declare it as I understand it, even if it doesn't make any difference.

As well as higher rate taxpayers, it will make a difference if you claim tax credits, if you have an age allowance and are in the band where it's tapered, or if you don't earn enough to pay tax (then you have repay the tax relief the charity got!).

What difference do gift aid payments make if you claim tax credits?

I'm a basic rate taxpayer & having just done my tax return for 12-13. I've noticed that I've only just paid more tax than given donations to charities which can claim gift aid on these donations.

My calculation on my return says my basic rate limit has been increased by £1330 to £36750 for gift aid payments.

This current tax year (13-14) I may well pay less tax than give donations - should I inform the charities now that they can't claim gift aid this year, then allow some charities to claim for backdated gift aid (for 13-14) next financial year (14-15) when I know how much tax I will have paid? How many years backdating of gift aid does HMRC allow charities to claim for?

Savvy_Sue

JustKeepSwimming wrote: »

This current tax year (13-14) I may well pay less tax than give donations - should I inform the charities now that they can't claim gift aid this year, then allow some charities to claim for backdated gift aid (for 13-14) next financial year (14-15) when I know how much tax I will have paid?

You could do that, you do need to do something, but how about telling your least favourite charities that they can't claim Gift Aid this year, so that you don't make unnecessary work for your favourite ones?

JustKeepSwimming wrote: »

How many years backdating of gift aid does HMRC allow charities to claim for?

I think it's now four years. However, because the time limits can get quite tight it would be helpful if you didn't wait four years to tell them ...

Elaine_Wilson

JustKeepSwimming wrote: »

What difference do gift aid payments make if you claim tax credits?

Your income can be reduced by the gross amount of the gifts. Page 11 of the notes accompanying the renewal form shows this as the fourth item in the deductions section.

Reducing the income will increase the tax credits received if they are being reduced by the marginal rate.

Savvy_Sue

Elaine_Wilson wrote: »

Your income can be reduced by the gross amount of the gifts. Page 11 of the notes accompanying the renewal form shows this as the fourth item in the deductions section.

Reducing the income will increase the tax credits received if they are being reduced by the marginal rate.

Although in case anyone was wondering, Gift Aid donations AREN'T taken into account for student loan contributions, if your children are that kind of age ...