Hi all
If anyone has previous experience of this I would be grateful.
What does one do if they have ticked the 'gift aid' box for their charitable donations for the 2016-17 tax year, but found out that they actually did not earn above the tax threshold!?
I understnad that you could opt to carry the donations back to the previous tax year, but the tax paid would not be sufficient in that tax year either!
Any views would be much appreciated.
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The gift aid payment will give rise to an additional tax charge at the end of the year, assuming the individual is in Self Assessment. The taxpayer must effectively reimburse the exchequer for the relief that was passed on to the charity.
Thanks alot for your answer Tim - much appreciated. Are you aware of whether they will be promopted to pay the additional amount, or does one need to make the contribution themselves?
If self assessing, it'll be included in the tax calculation.
For those not self assessing, I suspect that much of this - if not all -is overlooked.
It will be part of their tax calc under self assessment. Payment due under the same terms as usual.
You might contact the charity / charities, and ask for the declaration to be withdrawn - for example Shelter has a note in their FAQ's covering this - http://england.shelter.org.uk/donate/gift_aid_it