With end of the tax year fast approaching now is a good time to consider chartiable giving to maximise the use of your individual tax allowances, reliefs and exemptions for the current tax year. Some of these will be lost if not used by 5 April 2023.
HCF's auditors have prepared some advice below which we thought you may find helpful:
Gifts to charities attract tax relief in a special way that can benefit both the charity and the donor. Most donations are in the form of cash gifts, although relief can also apply to gifts of assets.
For every 80p donated to HCF the Government will top it up with a further 20p, so long as you can certify on a ‘Gift Aid Declaration’ that you will pay enough UK tax to cover that 20p. The charity gets £1.
If you pay tax at the higher rates of 40% or 45%, the good news is that you can make a further personal claim to tax relief via your PAYE code or Self-Assessment tax return - of 20p or 25p for every 80p donated.
So, for example, a gift of £80 will generate £100 in benefit to HCF after gift aid has been claimed), but also attracts personal tax relief of £20 or £25 (depending on your tax band) thus reducing your net outlay to £60 or even £55.
Tax effcient cash donations can also be made via payroll. If your employer does not currently offer payroll giving please speak to HCF to find out more.
Child benefit and tax relief Depending upon your income charitable donations may have an impact on your high income child benefit tax.
Read more >>Other tax relief optionsAlternatively, you may prefer to donate assets rather than cash. Click on the links below to find out more:
Donating quoted shares >> Inheritance tax >>Tax relief for companies >> For further information:If you wish to know any more about any of the tax reliefs discussed please contact Priya Raja-Motala at
Myers Clark Accountants , email:
priyar@myersclark.co.uk, telephone: 01923 224411
If you would like to make a gift to support the work of HCF please contact Amanda Jansen, Head of Philanthopy, email:
amanda.jansen@hertscf.org.uk, telephone: 07711 143267