At this time of year many of us make donations to charity, and when we do it is worth remembering gift aid.
If you donate to charity under gift aid, the charity can reclaim an extra 25p for every £1 that you give at no extra cost to you. To enable the charity to do this you need to sign a gift aid form.
If you pay income tax at the higher or additional tax rates then you can claim the difference between the rate of tax you pay and the basic tax rate on your donation from HMRC. This can be done via your self-assessment tax return or by asking HMRC to amend your PAYE tax code.
Please also bear in mind that gift aid donations made prior to 31 January 2018 can be carried back and offset against your income tax liability for 2016/17. This can be a very good way to manage your income tax liability, whilst doing good for others too.
Merry Christmas and Happy New Year from Tax Chat. We will be taking a break now, back on 15 January.
For more information, please contact Lesley Sutton on 01484 550037 or email firstname.lastname@example.org.