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    • beng165
    • By beng165 1st Mar 17, 8:49 PM
    • 2Posts
    • 0Thanks
    Second job, higher rate tax, gift aid
    • #1
    • 1st Mar 17, 8:49 PM
    Second job, higher rate tax, gift aid 1st Mar 17 at 8:49 PM

    I work as a doctor who earns just under 40k, and am starting to do some ad-hoc locum work at the weekends through a locum agency. As this will be a second job, my earnings will be taxed at 40%. I'm blessed with a good financial position and can afford to donate some of my income at present to charity. The extra earnings from this second job will be around 500 per month, all of which I can afford to give away.

    I assumed that the charity would be able to claim all of this 40% tax, which is wrong as it seems to be more complicated than that.

    (can't add link here as I'm a new user, google "gift aid, HMRC, higher rate)

    What I think this says is that the charity claims gift aid as normal, and I can claim back another 20% myself by self assessment or by asking HMRC to update my tax code.

    I'm currently paid through PAYE for my primary job, and will be on PAYE in the second job also. I don't submit a self assessment.

    As I understand it, to claim the extra 20% I'll have to contact HMRC to tell them about my charitable donations for them to update my tax code. I'm a bit confused.

    Will I have to tell HMRC about all of my donations, or just those where I'm hoping to claim the extra 20%?

    Is there any simpler way of doing this?

Page 1
    • Savvy_Sue
    • By Savvy_Sue 2nd Mar 17, 1:49 AM
    • 38,385 Posts
    • 34,988 Thanks
    • #2
    • 2nd Mar 17, 1:49 AM
    • #2
    • 2nd Mar 17, 1:49 AM
    Personally, I think you'd do best to go into self-assessment, because your locum earnings are likely to vary; that might mean the PAYE system just can't get you on the 'right' tax code for your higher rate tax; and you can't reclaim the 20% tax on your Gift Aid charitable giving through your tax code because that may vary too ...

    And I think, although you are asking about charitable gifts, this would be better on the Cutting Tax board, so I hope the BG will move this for you.
    Still knitting!
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    • undeutbar
    • By undeutbar 18th May 17, 9:09 PM
    • 4 Posts
    • 0 Thanks
    • #3
    • 18th May 17, 9:09 PM
    • #3
    • 18th May 17, 9:09 PM
    Your basic rate band is extended by the amount of your charitable gifts, hence you get the extra 20% back.

    I agree SA might be a good way to go if it is variable income. If your income goes over 50k and you or your partner are receiving child benefit, remember that you will be required to file anyway.
    The early bird gets the worm but the second mouse gets the cheese
    • sheramber
    • By sheramber 21st May 17, 6:47 PM
    • 4,512 Posts
    • 3,405 Thanks
    • #4
    • 21st May 17, 6:47 PM
    • #4
    • 21st May 17, 6:47 PM
    For the current year t he higher rate tax band starts at 45,000 so, depending on your total income , you may not be liable at higher rate
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