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As 2019 draws to a close and the end of the tax year approaches on 5 April, consideration should be given not only your own financial position but also how the good causes that are close to your heart can be supported to best effect.
Almost everyone, including HMRC agrees that giving Charity is good. As such, there are a range of tax reliefs and schemes in place which make the process easier and reduce the cost of charitable giving.
Gift Aid is just one such scheme, whereby Charities are able to recover the basic rate of income tax on donations from UK tax paying individuals and the taxpayer is able to obtain a tax reduction for any tax in excess of the basic rate on donations.
Illustrating this by way of example, highlights the tax efficiency of this donation method:
- Donation =£1,000
- Gift Aid to Charity = £250
- Higher Rate Taxpayer’s Income Tax Liability Reduction= £250
- Total donation received by Charity = £1,250
- Cost to individual of donation = £750
If you are interested in
- Tax efficient Charitable Gifting for individuals, employees and companies
- Obtaining Gift Aid Registration and submission of Gift Aid Claims for your existing Charity
- Establishing a Charity or Social Entity to pursue a purpose you feel strongly about
- Governance of your existing Charity
Tags: Charities
