Goodier Smith and Watts

Devonshire House
Manor Way, Borehamwood
Hertfordshire, WD6 1QQ

Search News


Getting tax relief sooner for charitable donations

Source: HM Revenue & Customs | | 02/04/2019

If you are a higher rate or additional rate taxpayer, you are eligible to claim relief on the difference between the basic rate and your highest rate of tax. The charity you donate to can reclaim the basic rate of tax from donations made by taxpayers.

For example:

If you donated £5,000 to charity, the total value of the donation to the charity is £6,250. You can claim back additional tax back of:

  • £1,250 if you pay tax at the higher rate of 40% (£6,250 × 20%),
  • £1,562.50 if you pay tax at the additional rate of 45% (£6,250 × 20%) plus (£6,250 × 5%).

Carry back gifts to speed up tax benefits

If you have made a gift to a charity in the 2018-19 tax year, you can carry back the gift to the previous tax year as long as you do this before filing the 2018-19 return. This can accelerate repayment of any tax associated with your charitable giving. This can also be a useful strategy if you are not a higher rate tax payer in the current year, but you were in the previous year.

You can only claim if your donations qualify for gift aid. This means that your donations from both tax years together must not be more than 4 times what you paid in tax in the previous year. If you do not complete a tax return you need to use a P810 form to make a claim.



 

Latest News

Self-Employed and Job Retention Scheme changes
30/05/2020 - More...
On Friday afternoon, in the Government's daily news briefing, the Chancellor outlined how the Coronavirus Job

Additional funding for charities and social enterprise
26/05/2020 - More...
The government's dormant assets scheme allows money in accounts that have been dormant for at least 15 years to be

Further support for charities from VAT receipts
26/05/2020 - More...
It has been revealed by HM Treasury that the VAT collected on donated personal protective equipment (PPE) will be given

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login

 

 

ICAEW-BLK RGB  

 

Save

Save

Copyright © 2020 - Goodier, Smith and Watts

Cookie Policy | Website Privacy Policy                                                                                                                                                                                                                                                         

Registered in England under the number 3724657