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Claiming Higher Rate Gift Aid Tax Relief on Charitable Donation - Basic Query
Sorry for the basic question, but I cannot find the correct answer and am going around in circles..
Higher rate tax payer pays £159 membership to a charity which qualifies for Gift Aid and a Gift Aid declaration has been duly signed.
Charity confirms the Gift Aid is £39.75.
What is the actual figure which is added to the Charitable Giving Box? Is it the membership price which was actually paid eg £159?
Or is it £159 plus the £39.75 = £198.75?
I see references on HMRC site to grossing it up with the basic rate already applied which suggests the correct figure is £198.75 but don't want to get this wrong.
And where is the box to reclaim the last 4 years if the donations have been previously missed? I cannot see this anywhere in Charitable Giving Section- just for the current year or the following year….
I spent hours on hold to HMRC last week, so am keen to avoid repeating this if possible.
Many thanks in advance.
Comments
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39.75 is 20% of 198.75 so it sounds like you should use the 198.75 figure.
I don't know about the past 4 years - maybe you have to call them (again)
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I think on reflection that @JamesRobinson48 is right. I looked back at an old tax calculation where I had claimed gift aid for a payment I made (where I did not gross up for any gift aid claimed by the charity. I just put in the payment I made) and HMRC grossed it up and added the grossed up figure to my higher rate band.
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You do not need to calculate the amount of the relief due. Simply enter the total amount of payments made under Gift Aid in boxes 5, 6, 7 and 8 (as appropriate) on page TR 4 of your tax return.
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Thank you so much, everyone, this is exactly what I was looking for - the actual figure to insert! I will just add the actual sum paid to the charity on the tax return and HMRC can sort it.
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