Gift Aid

michaelaem

Just starting on my tax return - it asks what gift aid donations I have made this year. I had made quite a few but have no records (didn't know this would come up). How can I find out?

Thanks guys

SeniorSam

Presumably you made charitable gifts with the gift aid in order for the charity to claim the tax and enhance the gift. If you enter these gifts on your tax return, then the tax will be reclaimed from the charity. I doubt you would want to do this, so ignor the entry and say no charitable gifts made.

Sam

michaelaem

Certainly not! Don't know who would. Thanks. Shall leave blank.

cte1111

SeniorSam wrote: »

Presumably you made charitable gifts with the gift aid in order for the charity to claim the tax and enhance the gift. If you enter these gifts on your tax return, then the tax will be reclaimed from the charity. I doubt you would want to do this, so ignor the entry and say no charitable gifts made.

Sam

That's erroneous. The charity can reclaim basic rate tax on the donation. If you enter your gift aided amount, then your basic rate tax band is extended by this amount. Effectively the charity get 20% (basic rate) and you get 20-25% (extended rate tax saved).

This only applies to higher rate tax payers, otherwise the gift aid is ignored on your tax return.

IainHL

To echo cte1111, what SeniorSam posted is incorrect.

To the OP, if you have made these gifts from your bank account (rather than in cash) can you not go back through your online banking and tot them up?

grey_gym_sock

actually, there are 2 ways in which the figure you put on the tax return for gift aid can matter. (neither of which affect the charities concerned: they will claim 25% of what you paid them from HMRC, regardless.)

1 is (as cte111 said) that higher-rate tax payers can save some tax.

the other is that, if the total amount charities will have claimed from HMRC is less than the total tax you have paid for the year, then HMRC will charge you for the difference.

if it's clear that neither of those circumstances apply - which is the case for most basic rate tax payers - then the exact figure you enter isn't critical.

michaelaem

Thanks everyone. I suppose next year I should keep better records, this year I will just have to do my best to calculate.

zagfles

grey_gym_sock wrote: »

actually, there are 2 ways in which the figure you put on the tax return for gift aid can matter. (neither of which affect the charities concerned: they will claim 25% of what you paid them from HMRC, regardless.)

1 is (as cte111 said) that higher-rate tax payers can save some tax.

the other is that, if the total amount charities will have claimed from HMRC is less than the total tax you have paid for the year, then HMRC will charge you for the difference.

if it's clear that neither of those circumstances apply - which is the case for most basic rate tax payers - then the exact figure you enter isn't critical.

Or if you get an age related tax allowance and are in the band where it's withdrawn, or if you claim tax credits (in which case it doesn't affect income tax, it affects tax credits, but you need the income you declare on your tax return to match your tax credits claim otherwise questions may be asked).