Tax due on Gift Aid payments

stb

My self-assessment calculation contains this line:

Tax due on Gift Aid payments	£X	x 20%	£Y

I am resident in the UK, employed, and have paid sufficient income tax to cover the amount. In previous years this line does not appear. Why am I being charged for giving to charity?

DullGreyGuy

And is Y being added or subtracted from your tax?

Are you a higher rate tax payer?

stb

It is being added. Yes, expecting the additional 20/25% back above what the charity has claimed - which has been accomplished by raising the basic rate band as in previous years.

zagfles

You'll need to post your full calculation if you want help here, then we might be able to identify the problem. Obviously, leave out personal info

[Deleted User]

Are gift aid payments being deducted from your taxable income first before the tax retained thereon is added back later?

stb

No, they aren’t being deducted in the first section. Everything else remains as it did in previous years except this and the next two items’ presence. Maybe suggesting I’ve accidentally become non-dom?!

minus Remittance basis charge for non-domiciles			£0.00
Gift Aid tax charge £0.00

hollygolightly1

I have just completed my draft tax return and noticed the very same thing - so I've been trying to figure it out. In case you never got an answer to it, here it is. 

If you look at the top of the section 'How we have worked out your income tax' there is an adjustment to your basic rate limit to allow for the gift aid payment:

"Your basic rate limit has been increased by £xx.00 to £XX,XXX for Gift Aid payments.

This reduces the amount of income charged to higher rates of tax."

This then nets off against the line you mentioned (and if you are a HR taxpayer you get a benefit).

[Deleted User]

hollygolightly1 said:

I have just completed my draft tax return and noticed the very same thing - so I've been trying to figure it out. In case you never got an answer to it, here it is. 

If you look at the top of the section 'How we have worked out your income tax' there is an adjustment to your basic rate limit to allow for the gift aid payment:

"Your basic rate limit has been increased by £xx.00 to £XX,XXX for Gift Aid payments.

This reduces the amount of income charged to higher rates of tax."

This then nets off against the line you mentioned (and if you are a HR taxpayer you get a benefit).

That is absolutely correct.