23/24 Self Assessment Gift Aid change to Personal Allowance

GinBerry2025

Hello everyone,

I am reviewing my self assessment for 23/24 that my accountant has prepared and I have a query for my own calculations.

I made a small gift aid payment of £95 and on the tax calculation is states:

Your basic rate limit has been increased by £119 to £37,819 for Gift Aid payments. This reduces the amount of income charged to higher rate tax.

I am trying to work out how £95 becomes £119?  Any ideas?

Famau

119 times 20%, subtracted from 119 and rounded...

zagfles

GinBerry2025 said:

Hello everyone,

I am reviewing my self assessment for 23/24 that my accountant has prepared and I have a query for my own calculations.

I made a small gift aid payment of £95 and on the tax calculation is states:

Your basic rate limit has been increased by £119 to £37,819 for Gift Aid payments. This reduces the amount of income charged to higher rate tax.

I am trying to work out how £95 becomes £119?  Any ideas?

Grossed up, the charity reclaims basic rate tax. So divide by 0.8 to get the gross payment

Nomunnofun1

You are deemed to have made a gross payment of £119 and deducted 20%. The charity can reclaim this deduction. As said, rounding is involved. 

MetaPhysical

How does this work for upper rate tax payers?  The SA works it all out doesn't it, i.e. you enter the amount you actually gave to the charity and not the amount + 25% like you would with a one off pension payment?

Nomunnofun1

MetaPhysical said:

How does this work for upper rate tax payers?  The SA works it all out doesn't it, i.e. you enter the amount you actually gave to the charity and not the amount + 25% like you would with a one off pension payment?

You are correct on both counts. Enter the amount PAID and the calculation works it out for you.