Product in exchange for charity donation

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/81950989#Comment_81950989

Yes, that is how they work.

We donate to the local charity shop and always Gift Aid. They put a barcode sticker on our donations and then scan at the till when sold. Around May time I receive an email with a letter attached declaring the value of the donations sold.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81951021#Comment_81951021

Thanks for that. You learn something new every day !

monaymadlol

Hi

Lots of messages about charity shop. BTW, I give old clothes to acorns and tick gift aid, didn't know they write to you about it. Wondered why they wanted my postcode.

Not sure if I will be a higher or lower rate payer for 25/26 til I complete my return.

The item was a collectible, donation was hundreds to an international charity, I ticked gift aid.

So I assume I can add it to my return to lower my tax burden a little

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/81951147#Comment_81951147

You can only declare the value in your tax return to widen your basic rate band once you receive the letter confirming the realised value from the charity.

With the charity shop we donate to, low value donations may not result in the letter being generated. I guess even if the system is largely automated there is some cost to produce the letter.

We often find donations of clothes generate very little. AIUI, most donated clothes never get sold but weighed in for rags.

monaymadlol

https://forums.moneysavingexpert.com/discussion/comment/81951149#Comment_81951149

The realised value of the item i received in exchange for a large donation?

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/81951207#Comment_81951207

If you received an item in return for your money, then you did not make a donation. You purchased the item.

The person who donated the item which you subsequently purchased is the person who made the donation. That individual may have declared gift aid and might be able to broaden their basic rate band.

Jeremy535897

https://forums.moneysavingexpert.com/discussion/comment/81951304#Comment_81951304

Unless you pay more than market value, in which case the excess is a donation.

monaymadlol

https://forums.moneysavingexpert.com/discussion/comment/81951304#Comment_81951304

The person , an artist, who made the goods for the intention of charity donation is one aspect, but donors were asked to donate directly to the charity, so can this be seen as a purchase?

monaymadlol

Hmrc will not know that i received a donated item in return?

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/81951625#Comment_81951625

Like anything else in your self assessment, HMRC can request evidence.