Income just over the higher rate tax band and child benefit limit - gift aid the excess?

[Deleted User]

skipfeeney said:

[Deleted User] said:

JamesRobinson48 said:

Assuming there's no taxable interest or dividend income, might it even be sufficient to Gift Aid a cash amount of £297 (as opposed to £371)?   Don't HMRC's workings treat the cash paid as an amount net of 20% income tax to be reclaimed by the charity, such that the gross charitable contribution would be treated as (£297 / 0.8) = £371?  Frankly, might not even £296.01 suffice, given the pence rounding convention on self-assessment returns?  Just asking.

You are correct although, personally, I would give myself a little leeway - say £320 net, £400 grossed up. 

 Can I just double check...so I give £320 away, do I then put £400 gift aid on the tax return or £320 still?

You enter £320. You will see that your basic rate band will be extended by £400 on the calculation.

MetaPhysical

...as is the 60% tax trap higher up the earnings scale.  It would cost £7billion to abolish it.