Money Moral Dilemma: Should I tell my friends I get tax relief from our combined charity donations?

MSE_Kelvin

This week's MoneySaver who wants advice asks...

Seven friends and I give to a different charity each week, donating up to £5 each. As my employer matches any charity donations employees make, I volunteered to collect the money and donate it to our chosen charity each week. However, by doing this through my pay I get tax relief, which is often more than my individual contribution. Should I explain this to my friends and donate more to charity? Or leave it be, as the charities wouldn't be getting double the donation without my (and my employer's) input?

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comeandgo

It’s only tax relief you get, it won’t be a lot.  I’d tell them and buy an extra round at the pub for them or something. 

Savvy_Sue

Hang on, so you collect, let's say £5 from 4 friends, and then tell your employer that you are giving £25, which they match fund, and you also get the tax relief? 

I know that if you were Gift Aiding other people's money, it would be against 'the rules', so this strikes me as dodgy. I know your employer may not find out, but I can't help feeling that if they DID find out, they would care. 

So no, I wouldn't tell your friends ... 

WorcesterParkWoman

This:

"I know that if you were Gift Aiding other people's money, it would be against 'the rules', so this strikes me as dodgy. I know your employer may not find out, but I can't help feeling that if they DID find out, they would care."

daivid

So in the eyes of your employer you are giving generously whilst in reality you are giving little or nothing. At the very least you should be contributing (in real terms) as much as your friends, there is also the issue of whether by lumping other's donations in with yours you are defrauding your employer.

keithyno.1

As pointed out by daivid above, you are essentially defrauding your employer. You’ve said it yourself, your employer matches any charity donations EMPLOYEES make - not employees and a bunch of their mates!

You might be doing this with good intention as the money is going to charities but fraud is still fraud. This is your big chance to put a stop to it.

bordercars

at the very least you should contribute the same as your friends in real terms. 

bikaga

Does your employer match it as fundraising or as your individual donation? If it's the latter, then I'm with what others have said regarding you potentially defrauding your employer - do check out the rules carefully and consider if you want to continue with this.

If it's as fundraising, then I would calculate what you save over the year and maybe put it aside to do something nice for your friends, or, even better, donate it to charity, and that time it'll actually be entirely from you, and you won't have to feel slightly guilty towards your friends or your employer

agadsby

I suspect HMRC might want a chat with you as this appears to violate the “who is the Donor?” rule and also appears to be income to you from your friends. 

Kerri23gan

It just feels wrong, yes you should tell them and find a way to do it properly. I am no expert but it doesn't feel right 

Djandylion

It seems you are being more than  a little dishonest with both your employer and your friends. Maybe you should pass on the responsibility of collecting the money. You must feel guilty to ask the question