Tax relief on charity donation.

[Legacywr]

I intend donating some money to charity (MacMillan), I'd like to know the best way for me to be able to claim the tax relief on said donation?

Also, do I need to get a receipt or some sort of voucher as proof?

Edited to add.. It's a personal donation.

Thanks in advance

Edited by Legacywr on Friday 26th May 16:34

[User33678888]

Do you pay high rate tax?

[Legacywr]

Sorry, yes, I pay 40%.

[Jockman]

I note that my Self Assessments ask if I have donated to Chariddee.

[anonymous-user]

Would it be easier to pay a lower amount and gift aid the tax to bring the cash amount received by the chairty up to the same amount?

I haven't had any beer yet on this fine afternoon so I may be wrong.

[Legacywr]

I'm confused as to wether I claim 40% relief? Or, not?

[ladderino]

It's easier through Self Assessment, but HMRC can amend your tax code if you are PAYE.

https://www.gov.uk/donating-to-charity/overview

[Eric Mc]

Agreed, but self assessment is being abolished with effect from 6 April 2018.

[Welshbeef]

Eric Mc said:

Agreed, but self assessment is being abolished with effect from 6 April 2018.

I love Govt IT projects it always means timescales are way too optimistic. I'd not be too worried Eric

[Eric Mc]

I am.

There is no obvious sign at the moment that this timetable is in anyway being delayed.

[davek_964]

Legacywr said:

I'm confused as to wether I claim 40% relief? Or, not?

I'm not sure how you claim a specific % relief on your tax return. I donate to a few charities each year (usually via Gift Aid) and on the tax return I simply enter the total in the one-off charity donations box. Then I let HMRC work it out - which usually results in a refund, since my donations exceed my taxable benefits.

[oop north]

For a higher rate taxpayer making a gift aided donation, the cash / payment is deemed to have basic rate tax relief applied. So, if you give £80 to a charity, they then claim back £20 from HMRC to bring up the tota to £100.

In your tax calculation, you get to claim the other £20 to bring the net cost to you down to £60. (£100 gross gift less 40% relief - you get a £40 total saving, but you have already had the benefit of the £20 that the charity claims back (because you paid £80 for them to get £100) so you can get £20 back)

End result charity gets £100, cost to you £60.

I hope that makes sense - when I was taught this by tax lecturer about 30 years ago I really didn't get it at first

[Sheepshanks]

swerni said:

If you donate £80, the charity can ( if you agree) claim 20% tax relief,

I think because of the tax concept of grossing up, it's 25% - so I believe his sums are correct.

[Legacywr]

So, if I don't allow the charity to claim the 'gift aid' tax allowance, can I claim the whole 40% relief myself?

[Eric Mc]

Legacywr said:

So, if I don't allow the charity to claim the 'gift aid' tax allowance, can I claim the whole 40% relief myself?

You can only make a personal tax relief claim for Gift Aided charitable donations.

[Legacywr]

Eric Mc said:

You can only make a personal tax relief claim for Gift Aided charitable donations.

So, the most relief I will get is, the difference between the tax claimed, at the basic rate, by the charity, and, the higher rate that I pay tax at?

Just out of interest, have I punctuated that staement correctly?

[So]

Legacywr said:

I intend donating some money to charity (MacMillan), I'd like to know the best way for me to be able to claim the tax relief on said donation?

Also, do I need to get a receipt or some sort of voucher as proof?

Edited to add.. It's a personal donation.

Thanks in advance

Edited by Legacywr on Friday 26th May 16:34

You do know, don't you, that Macmillan will afterwards forever spam you with unwanted mailings? They won't stop if you ask them.

I donated to them once a few years ago and will never do it again. Perhaps receiving a letter from them every couple of weeks isn't the end of the world, but I donated money to assist them; the least they can do is respect my request that they don't send me endless mailings.

[anonymous-user]

Legacywr said:

Just out of interest, have I punctuated that staement correctly?

No

[Legacywr]

Not bad for a dyslexic

[easy_rider33]

Interesting topic. Looks like the government now thinks it knows how best to utilise my money so my donations are now at zero. Overseas aid being the number one waste along with other hair brained schemes.