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Seem to be PAYING for Gift Aid
brixtonite
Posts: 3 Newbie
in Cutting tax
Hi,
Another SA question - completing one for the first time.
I'm a higher-rate tax payer. I paid £601 to a few charities over the 14/15 tax year, so entered it on my charitable giving page. (Sadly I can't remember if I gift-aided it or not - pretty sure I did.)
When I looked at my calculation page, it seems I'm paying out an extra £150 in income tax as a result.
Their reasoning goes like this:
"How we have worked out your income tax
Your basic rate limit has been increased by £753.00 to £32,618.00 for Gift Aid payments.
This reduces the amount of income charged to higher rates of tax."
Then under income tax charged there's a line that says this:
Tax due on Gift Aid payments (B) £752.00 @ 20% £150.00
And as a result I have to pay £150.
Totally baffled. I always thought Gift Aid was about tax relief - I can't understand why giving to charity means I have to pay more tax...
Anyone help?
Another SA question - completing one for the first time.
I'm a higher-rate tax payer. I paid £601 to a few charities over the 14/15 tax year, so entered it on my charitable giving page. (Sadly I can't remember if I gift-aided it or not - pretty sure I did.)
When I looked at my calculation page, it seems I'm paying out an extra £150 in income tax as a result.
Their reasoning goes like this:
"How we have worked out your income tax
Your basic rate limit has been increased by £753.00 to £32,618.00 for Gift Aid payments.
This reduces the amount of income charged to higher rates of tax."
Then under income tax charged there's a line that says this:
Tax due on Gift Aid payments (B) £752.00 @ 20% £150.00
And as a result I have to pay £150.
Totally baffled. I always thought Gift Aid was about tax relief - I can't understand why giving to charity means I have to pay more tax...
Anyone help?
0
Comments
-
Quite difficult to explain this one. Take a note of the total tax due. Now, delete the entry that you have made for gift aid. Check the calculation again. Is there a difference?0
-
I've just figured it out. I was being an idiot, and had failed to say I was an employee at the start of the return. Which meant I hadn't filled in an income. Which meant they thought I was paying zero income tax.
Sorry to waste your time...0 -
You didn't - helps others to not make the same mistake.0
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