\u2018Tick the Gift Aid\u2019 box to boost your donation to charity and save some tax.<\/b><\/p>\n
The number of national and international calls on our goodwill to donate to causes has grown in the last few years. You are probably familiar with the \u2018Tick the Gift Aid\u2019 box, or a request to sign a declaration, when you donate to charity. As a rule, it makes sense for you and the charity to do so. This simple step could mean a \u00a3100 gift costs you only \u00a340 (or \u00a332.50 in Scotland).<\/p>\n
When donating with Gift Aid, the charity can reclaim \u00a32 of tax from the government for every \u00a38 you donate. The only constraint is that you must have paid at least as much income tax or capital gains tax in that tax year as the charity will claim. For instance, if you gift \u00a3800 and the charity reclaims \u00a3200, you will need to have paid \u00a3200 in tax.<\/p>\n
If you pay tax at more than basic rate, gifting allows you to reclaim some tax. For example, let\u2019s revisit your \u00a3800 gift. If you have at least \u00a31,000 of income taxed at 40%, then you can personally reclaim \u00a3200 (\u00a31,000 x (40%\u201320%)). This increases to \u00a3250 for 45% taxpayers. However, the process is not automatic and you must remember to make a reclaim, usually through your tax return.<\/p>\n
The tax relief mechanics of Gift Aid donations can provide other tax benefits because the amount of your gift, plus the tax reclaimed by the charity, counts as a deduction in calculating your \u2018adjusted net income\u2019. This income figure is used in three important income thresholds:<\/p>\n
A good \u2013 if somewhat extreme \u2013 example would be Joe, who has an income of \u00a3102,000 and makes a donation of \u00a31,600 (equivalent to \u00a32,000 for the charity after its tax reclaim). The gift reduces Joe\u2019s adjusted net income to \u00a3100,000, so he would:<\/p>\n
Tax treatment varies according to individual circumstances and is subject to change. \u2018Tick the Gift Aid\u2019 box to boost your donation to charity and save some tax. The number of national and international calls on our goodwill to donate to causes has grown in the last few years. You are probably familiar with the \u2018Tick the Gift Aid\u2019 box, or a request to sign a declaration, when […]<\/p>\n","protected":false},"author":2,"featured_media":11047,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"wds_primary_category":160,"footnotes":""},"categories":[160],"tags":[],"class_list":["post-11046","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","has-post-title","has-post-date","has-post-category","has-post-tag","has-post-comment","has-post-author",""],"builder_content":"","_links":{"self":[{"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/posts\/11046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/comments?post=11046"}],"version-history":[{"count":0,"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/posts\/11046\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/media\/11047"}],"wp:attachment":[{"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/media?parent=11046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/categories?post=11046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sbwm.uk\/v3\/wp-json\/wp\/v2\/tags?post=11046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
<\/i><\/b>The Financial Conduct Authority does not regulate tax advice.\u00a0<\/span><\/i><\/b><\/p>","protected":false},"excerpt":{"rendered":"