Tax efficiency from charitable donations

[RacingPete]

I am a little naive about tax as have been PAYE for so long, but as a high rate tax payer I have just heard of tax rebate on charitable donations.

Two questions on this:
1 - can you claim back tax retrospectively that wasn't claimed in previous tax years?
For example my national trust membership which I haven't filled in the charitable donation declaration for. If I do so now I believe the NT can go back 4 years of my membership, so can I do so also? Does this apply to other charitable donations (e.g. Mostly museum entry and charity shop purchases) for previous years?

2 - for those in the hidden 60% tax bracket where the personal allowance drops by £1 for every £2 over 100k - do charitable donations have an effect on this issue at all?

Thanks in advance.

[bogie]

Yes to both, you do it on your self assessment, just put total in charity donations section. So long as you have bank statements/receipts to back it up its fine. Recently did my partners with her and HMRC were fine with her going back 3 years.

If you do regular donations then HMRC will put your tax code up to include it, this does help when you start losing your tax code, obviously the more you give away, the more tax you get back. Its like diverting your tax too causes you support rather than leaving that up to the government.

[Revisitph]

RacingPete said:

I am a little naive about tax as have been PAYE for so long, but as a high rate tax payer I have just heard of tax rebate on charitable donations.


2 - for those in the hidden 60% tax bracket where the personal allowance drops by £1 for every £2 over 100k - do charitable donations have an effect on this issue at all?

Thanks in advance.

I understand that this is the case - and even more attractive and effective at the 67.5% bracket (additional rate payers who also lose their pension tax relief at £1 for every £2) - and if you are in a DB unfunded scheme then the virtual uplift in the virtual pot due to [ETA the recent jump in] RPI will make that even worse.

Such swingeing marginal rates mean that many at those thresholds are thinking:

1) why waste time earning it if you are going to pay nearly 70% tax?

2) if you can't readily reduce earnings/income, why not give it away to a cause you believe in more than funding general government expenditure, thus reducing your income to just below the punitive threshold?

[RacingPete]

Thank you both for the replies.

Now looking to see if there are any other methods to take full benefit of our British tax system.

[Revisitph]

If you search "charitable donations and tax relief" you get the HMRC website which isn't specially clear but there is also a PDF (which I can't link to on my phone) on the topic by stewardship org which looks to be useful.
Of course not only does the charity get your donation plus basic rate tax on that plus a little more but you get the difference between that and your marginal rate, and it is specially useful at the £100 & £150k thresholds.

ETA, right, back from earning what is then taken away again... here is the link: https://www.stewardship.org.uk/downloads/briefingp...

Edited by Revisitph on Monday 31st July 19:24

[RacingPete]

Thanks for the link and PM.

Obviously increasing pension contributions (salary sacrifice pension) are another way to drop down total earned, but is the cycle scheme applicable too in this instance?

Is there anything that can be done around season ticket loans too?