Gift aid for top rate taxpayer

simpson_77

Hi,

I have loads of children's toys, buggy etc to sell. Instead i'm thinking of giving to a charity shop to save the hassle.

Am I correct in thinking as top rate taxpayer I'll will get tax relief if I tick the gift-aid box? and how does this work? do you get notified when the goods have sold or are the numbers for the tax return based on a value when you drop off the items?

Sorry, new to all this

Dazed_and_C0nfused

There are two lots of tax relief.

The charity can reclaim basic rate relief from HMRC.

So if your goods sell for £40 they get an extra £10 from HMRC.

You include the gross amount (£50 in this example) on your Self Assessment return and receive higher rate tax relief.  I suspect you get a bit extra being an additional rate payer.  The gross contributions increases your basic rate band so more income is taxed at 20% and less at 40%.  Might be the same for 40% band 

[Deleted User]

Hmmm - chapter 3.42 is informative.

https://www.gov.uk/government/publications/charities-detailed-guidance-notes/chapter-3-gift-aid#chapter-342-claiming-gift-aid-when-goods-are-sold-by-and-the-proceeds-gifted-to-charities

Jeremy535897

Example 1 is how I do it. You get a number from the charity, and quote the number when you take the goods in. They are recorded against your number if and when sold. You get an email from the charity saying that if they don't hear from you in writing within 21 days they will keep the proceeds. Then you qualify for gift aid at your top rate of tax.

simpson_77

Perfect, sounds simple enough