You are reading a single comment by @hippy and its replies.
Click here to read the full conversation.
-
I've maybe got a grand or so in charity donations from this year. But I don't think the money I could get back would be worth the hassle of me doing "tax stuff". I got rid of all that paperwork when I went permie.
Same as that WFH allowance thing - it's not worth my time. But thanks for the explainer.
hippy
Because, as the link above shows, if you're a higher rate tax payer than you can claim back some tax too, and that doesn't stop the charity claiming the extra money it can get.
Example 1:
Basic rate tax payer donates £100 to charity and ticks the "Gift Aid" box.
Charity can claim an extra £25 (25p in the £).
Tax payer can't claim anything back personally in this case.
Example 2:
Higher rate tax payer donates £100 to charity and ticks the "Gift Aid" box.
Charity can claim an extra £25 (25p in the £).
Higher rate tax payer can also claim the difference in tax rates (currently 40%-20%=20%) of the total amount (£125 as it includes the original uplift). £125 * 20% = £25.
It's a perk of paying the 40% tax rate.
If you haven't been doing it then you could get a fair chunk of cash back from the Government just for submitting a few Self Assessments. (I have to do one each year anyway so it helps lessen the yearly tax bill.)