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Tax
poluk
Posts: 11 Forumite
in Cutting tax
Hi, I keep getting asked to fill out a self assessment form even though I am a non tax payer now due to retiring on a small private pension. I do give a few hundred quid to charity each year and when I include this in the tax return the final calculation shows I owe money (about £50) but when I take it off the return, it says I dont owe anything? Can anyone shed any light on why this should be? Many thanks
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If you make a payment to a charity of £200 under gift aid this will be treated as a gift of £250 with tax deducted of £50 which will be reclaimed by the charity. You must have paid the equivalent amount of tax. If you haven’t HMRC will chase you for it.0
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The charity should ask if you are a taxpayer. If you are not, don't gift aid your contributions, or you will have this problem every year.0
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That is the tax you have to pay on your gift aid donations as you have not paid enough tax already to cover the amount the charity have claimed.
If you do not enter the gift aid donations on the form they have not been accounted for. Bit , of course, that is a false statement of your afairs.
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Many thanks for your responses. Much appreciated.When asked I always say Gift Aid not applicable - does this make any difference?
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It certainly does. You wouldn’t be including them on your tax return as it specifically asks for gift aid payments.poluk said:Many thanks for your responses. Much appreciated.When asked I always say Gift Aid not applicable - does this make any difference?0 -
A ha! Many thanks again
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poluk said:Many thanks for your responses. Much appreciated.When asked I always say Gift Aid not applicable - does this make any difference?
If you have made Gift Aid payments you are ultimately responsible for paying enough tax.
If you weren't making Gift Aid payments why did you include them on the return in the first place?0 -
Donations to charity are not always Gift Aid donations.
Only donations made with gift aid are entered on the tax return0
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