Share this content
0
628

Tax releif for charitable donations

Can b/r tax payers claim tax releif on charitable donations for themselves if they dont gift aid

I know I shouldnt but Im struggling to get my head around the gift aid system.

If I've got it right - a basic rate tax payer gets £100 in their pay packet.  In order for that tax payer to receive £100 in their pay packet they must earn £125.  £25 gets deducted by HMRC from this £125, being 20% income tax leaving the tax payer £100 to spend.  The £25 that HMRC now holds can be reclaimed by charities from HMRC if the tax payer chooses to gift aid their £100 donation.

Is it possible for that taxpayer to reclaim the £25 for themselves if they don't gift aid their donation?

Thanks

Replies

Please login or register to join the discussion.

avatar
27th Nov 2018 11:26

Of course not.

Thanks (0)
27th Nov 2018 11:46

:-o

Thanks (2)
avatar
27th Nov 2018 12:00

What?

Thanks (0)
avatar
27th Nov 2018 12:04

only if you classified it as tax allowable employment expense; donations are assumed to be giftaided, so if you put them on the tax return and tax has been paid at source on earnings, the gift aid relief will be deducted from the tax bill but its been along time since you could get any tax back on donations.
your figures are suspect anyway; they ignore personal allowances and national insurance; because of these the dominant tax rate is closer to 30-35% not 25%

Thanks (0)
avatar
27th Nov 2018 12:15

No. On the other hand, if they do gift aid and they are a high rate taxpayer and they do fill in a tax return then they will.

Thanks (0)
By DJKL
27th Nov 2018 12:16

Well, that would make tax voluntary, "sorry HMRC, I am a mean ******** and gave nowt to charity, can I have my dosh back?"

Meanwhile Phil looks even more sad, the heartless ones all get their IT back and the charities reclaim it for all the others so he gets no IT.

(For those sad enough IT is not the big money spinner we all think it is, it is the most significant but is still only circa 25% of all taxes raised )

Thanks (0)
27th Nov 2018 12:26

I really hope someone comes along and says yes, 'cos then I'm gonna reclaim all my tax.

Thanks (0)
to SteLacca
27th Nov 2018 12:28

YES!

Thanks (0)
to Red Leader
27th Nov 2018 13:51

Excellent ;)

Thanks (0)
to Red Leader
27th Nov 2018 13:52

OF COURSE! Seems perfectly reasonable :)

E&OE

Thanks (0)
avatar
By MJShone
27th Nov 2018 13:08

To be fair to the OP, I think s/he is asking how an individual gets tax relief for donations to charity, particularly if the taxpayer doesn't make a gift aid declaration. Assuming the donation is cash, I'm aware of only two ways an individual can get relief for cash donations to charity.
Payroll giving: the donation is deducted from taxable pay, so tax relief is given at source at the taxpayer's highest rate.
Gift Aid: the individual needs to make a gift aid declaration. For a basic rate taxpayer, that's it, so long as s/he's paid enough tax to cover the gift aid claim that the charity will make. For a higher (or additional) rate taxpayer, the basic rate band is expanded by the grossed up gift (currently gift divided by 80%) so that the taxpayer gets relief at his or her highest rate of tax.

Thanks (1)
avatar
to MJShone
27th Nov 2018 15:41

Thanks MJShone - for seeing through the perhaps poorly constructed question.

So yes through payroll giving
And yes if you’re a h/r tax payer - you can reclaim the difference
But no in all other cases?

Thanks again

Thanks (0)
avatar
By MJShone
28th Nov 2018 14:11

'Fraid not...

Thanks (0)
avatar
to MJShone
28th Nov 2018 10:38

Thanks MJShone - for seeing through the perhaps poorly constructed question.

So yes through payroll giving
And yes if you’re a h/r tax payer - you can reclaim the difference
But no in all other cases?

Thanks again

Thanks (0)
avatar
27th Nov 2018 13:58

No

Thanks (0)
Share this content