Self Assessment Charitable Donations 17 June 2022 at 8:00PM in Cutting tax 6 replies 138 views

Kate489130

Hi

My husband has recently moved into the higher rate tax band and we had to repay some child benefit last year via self assessment for the first time. It looks like we’re going to need to do the same this year. I noticed on last years SA that there was the option to declare charitable donations to reduce liability. I’ve got a couple of questions about this and was wondering if anyone could help-

1) Is it only donations which are gift aided?
2) Does the gift aid declaration have to be in my husbands name or can it be in mines (most are payments to memberships and kids activities so I’ve not actually had to complete anything other than signing up)
3)should I have confirmation somewhere of gift aid so I have record of this should HMRC and how do I go about getting this?
4)can the donation be made by me from joint account-would my husband still be able to declare that as charitable donation? (Most of the kids activities are organised by me so in my name etc)
5)what about donations of goods to charity shops? would that count as I know I'm asked to fill out gift aid form when I drop things off? How do you quantify the amount? I’ve been thinking of selling stuff on eBay to earn some extra money but if we’d be able to get some tax back from charity shop sale of the same things, that would be my preferred option (and a lot less hassle than eBay selling!)

All in I think we probably make around £7-800 in these type of donations a year so seems worth making sure we’re claiming any tax back we’re entitled to.

any help/responses much appreciated

Dazed_and_C0nfused

1.  Apart from in limited, very specific, circumstances yes.

2.  It is his return so it is his Gift Aid that can be included not yours.  Yours would go on your own return (if you need to file one).

3.  You/he need to keep your own records.  HMRC will be able to check is entered on the return and investigate you if necessary.

4.  Not if it's your donation

5.  They would have to gifted in his name not yours.  Some charities send you updates of what the gift aid amounts are after things have been sold.

Kate489130

Dazed_and_C0nfused said:

1.  Apart from in limited, very specific, circumstances yes.

2.  It is his return so it is his Gift Aid that can be included not yours.  Yours would go on your own return (if you need to file one).

3.  You/he need to keep your own records.  HMRC will be able to check is entered on the return and investigate you if necessary.

4.  Not if it's your donation

5.  They would have to gifted in his name not yours.  Some charities send you updates of what the gift aid amounts are after things have been sold.

Thanks so much for this! Sounds like I need to get a bit more information from the organisations we’re paying to make sure they are claiming gift aid and that it is done in his name (I don’t pay higher rate). I presume if he pays this from joint account this is fine? As long as it is him that pays it?

Dazed_and_C0nfused

The detailed rules are here,

Chapter 3.32 covers joint accounts.

https://www.gov.uk/government/publications/charities-detailed-guidance-notes/chapter-3-gift-aid

theoretica

Sometimes paying charities is not eligible for gift aid, but I know in some circumstances if you make a small donation on top of the payment (eg zoo entry tickets) they can get gift aid on the whole sum.

YBR

Dazed_and_C0nfused said:

3.  You/he need to keep your own records.  HMRC will be able to check is entered on the return and investigate you if necessary.

Just to say that I have been asked to "prove" my Gift aid donations once, and I know of one other person. I think it's rare but it does happen.

Kate489130

Dazed_and_C0nfused said:

The detailed rules are here,

Chapter 3.32 covers joint accounts.

https://www.gov.uk/government/publications/charities-detailed-guidance-notes/chapter-3-gift-aid

Thanks for this-bit of light bedtime reading for me!