How do I check that the "Gift Aid" entry on my tax code notice is correct?

dlynch1319

I expect to have income just above or just below the level as which I would pay higher rate tax. Whether it's above or below depends on the gift aid which was wrong, but I have told HMRC about the increased amount of gift aid and they indicated that they have accepted my increased figure of £2092. The Gift Aid allowance on my tax code is £1234. I can't see how they got from £2092 to £1234.  I have googled for the details of the calculation without success.

Dazed_and_C0nfused

Unfortunately it can be complex to understand as it all depends on how much HMRC have estimated your taxable pay as (expected P60 pay figure).

[Deleted User]

As an example - assuming that you remain a higher rate taxpayer after the gift aid. (We don’t know) 

The gift aid payment is 2092 which will be grossed up to 2615 by HMRC. We shall assume that you pay tax at 40% on at least this amount. The amount that you pay at 20% before you hit the 40% rate is increased by this amount. You are therefore entitled to additional relief of £523 (20% of 2615).

To achieve  this through PAYE your tax must decrease by £523. Your personal allowance would increase by 1308. 40% of 1308 is £523.20.

There could be many reasons why HMRC calculate it at 1234 but, if you remain a higher rate taxpayer even after the gift aid, we are not too far away.

lisyloo

Do you have a pension either workplace or SIPP that you could make a lump sum to?
you have until 5/4
You would be able to claim 40% tax on that so it would stop you paying higher rate tax.
of course you can’t touch that money until at least 55 or 57 or possibly later