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?