How to correct a Gift Aid error on tax return

gterr

Hi there,


I am in self-assessment and have just registered for online submission of tax returns.


For the past few years I have been Gift Aiding charity donations. Now, when I am getting ready for this year's tax return, I realise that with the changes to savings interest and dividend allowances, I will no longer be paying income tax (or CGT). This is the first year this has happened. I have notified the charities but need to deal with Gift Aid claimed in the 2016-2017 year.


How do I correct my mistake on the SA tax return and pay back the tax wrongly claimed by the charities?


Thanks for your time.

Dazed_and_confused

You shouldn't need to do anything other than complete your return ensuring you include details of the gift aid amounts in 2016:17.

When you have completed the return the calculation should include an amount due in respect of the Gift Aid, basically you will have a self assessment liability equivalent to the tax relief the charities have claimed.

Cook_County

The charities have not wrongly claimed anything.

silvercar

Dazed_and_confused wrote: »

You shouldn't need to do anything other than complete your return ensuring you include details of the gift aid amounts in 2016:17.

When you have completed the return the calculation should include an amount due in respect of the Gift Aid, basically you will have a self assessment liability equivalent to the tax relief the charities have claimed.

To expand on what Dazed said, when you complete your tax return, it will automatically calculate the amount you need to pay hmrc to cover the amount that the charities will claim back in gift aid. The charities will claim back some tax you won't have paid, so hmrc will include that amount for you to pay through self assessment.

As the saying goes, "no good deed goes unpunished".