We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
P800 for TY 2024-25: charitable donations
Yorkie1
Posts: 13,192
Forumite
in Cutting tax
I'm just going through my P800 for TY 2024-25 and am confused by the Charitable donations section - the figures aren't right and I thought they weren't relevant if I wasn't a higher rate tax payer anyway (my gross salary was over £59K but the taxable amount was reduced by pension contributions).
I wondered whether anyone had any thoughts or suggestions? Or it may just be that the way it's set out is confusing, and the charitable donations are irrelevant. I've set out the calculations in full below in case they are helpful.
Income:
Salary £39463.63 [Income tax £5991.06] - correct from my P60
Untaxed interest £4509.00 [Income tax £0] - correct from my calcs (well, they were £4509.17)
>>> Total £43972.63 income / £5991.06 IT
Less your deductions:
Charitable donations £1950
But my records show I have donated, via Gift Aid, £4472 {which would amount to £1117.23 tax reclaim}
>>> Income less deductions £42022.63
Less your allowances:
Personal allowance £12570
>>> Total taxable income £29452.63
Income tax rates:
Personal savings allowance at 0% on £1000 income = £0
Basic rate at 20% on £30402 income = £6080.40
>>> Total £31402.00 income / £6080.40 IT
Adjustments:
Plus other adjustments (tax from earlier year) £421.60
Result:
Total tax payable £6502.00
Tax you've already paid £5991.06
You owe HMRC £510.94
I do note that if I take my total income of £43972.63, and deduct the 0% tax band of £12570, I get to £31402. This equates to the total income of £31402 listed under the Income tax rates section of the P800, on which the PSA and then BR tax are then applied. So on that basis, the calculation appears to be right, assuming that the tax owed from previous years is accurate.
But why is the charitable donations section wrong (if indeed it is), and do I need to do anything about it?
I wondered whether anyone had any thoughts or suggestions? Or it may just be that the way it's set out is confusing, and the charitable donations are irrelevant. I've set out the calculations in full below in case they are helpful.
Income:
Salary £39463.63 [Income tax £5991.06] - correct from my P60
Untaxed interest £4509.00 [Income tax £0] - correct from my calcs (well, they were £4509.17)
>>> Total £43972.63 income / £5991.06 IT
Less your deductions:
Charitable donations £1950
But my records show I have donated, via Gift Aid, £4472 {which would amount to £1117.23 tax reclaim}
>>> Income less deductions £42022.63
Less your allowances:
Personal allowance £12570
>>> Total taxable income £29452.63
Income tax rates:
Personal savings allowance at 0% on £1000 income = £0
Basic rate at 20% on £30402 income = £6080.40
>>> Total £31402.00 income / £6080.40 IT
Adjustments:
Plus other adjustments (tax from earlier year) £421.60
Result:
Total tax payable £6502.00
Tax you've already paid £5991.06
You owe HMRC £510.94
I do note that if I take my total income of £43972.63, and deduct the 0% tax band of £12570, I get to £31402. This equates to the total income of £31402 listed under the Income tax rates section of the P800, on which the PSA and then BR tax are then applied. So on that basis, the calculation appears to be right, assuming that the tax owed from previous years is accurate.
But why is the charitable donations section wrong (if indeed it is), and do I need to do anything about it?
0
Comments
-
As you were not a higher rate taxpayer then the Gift Aid (whether right or wrong) is pretty much irrelevant. Has no affect on your calculation.2
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.7K Banking & Borrowing
- 254.9K Reduce Debt & Boost Income
- 456.1K Spending & Discounts
- 248.3K Work, Benefits & Business
- 605.8K Mortgages, Homes & Bills
- 179K Life & Family
- 263.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.7K Read-Only Boards