Charity Payments - Gigt Aid

Axel

Hi,


I am completing my wife's tax return and she make small payments to several animal charities such as the Dog's Trust. The total is only £200 per year and I have entered this amount in the gift aid section as I cannot see another place to enter it. In the tax calculation the amount as been grossed up to £250 and she has had her basic allowance increased by this amount.


I understood that you got full tax relief on charity payments but apparently not, only relief from higher rate tax. She is not even sure if the charities are part of the gift aid scheme, cannot remember filling in any tax forms for them, and her total income is nowhere near the higher rate tax band. Should I just remove this payment and forget it or could I be missing something?


Axel

grey_gym_sock

the charities will have claimed £50 from HMRC (assuming they are using the gift aid scheme, and forms were completed). the effect is that a £250 donation to charity has only cost your wife £200, which is (for a basic rate tax payer) the same as being able to donate £250 from your income before tax is applied to it.

there is a further saving for higher rate payers.

non-tax payers would be asked to pay £50 to HMRC after filling in the tax return (otherwise the charities would have effectively reclaimed £50 tax that had never been paid).

Dave_the_Ginger_Cat

And yes, please do include it on your return.

If you are ever unsure on the calcs, and presuming you're doing this online (as the deadline looms!) try it once with and once without.