Readers’ forum: Reporting gift aid declarations in returns

I am sure that many taxpayers sign gift aid declarations and then omit any reference to the donations on their tax returns.

One of my clients has made a substantial donation in 2021-22 and has asked whether it is necessary to report it given that he is only a basic rate taxpayer but will have paid sufficient tax to cover the repayment that the charity will claim.

He pointed out that gift aid is listed as a ‘relief’ in the return and it is surely optional to claim a relief – but would HMRC want to know about it given that excessive donations can create a liability?

If he was not already required to file a return ‘there is no liability’ is a good enough reason not to tell HMRC. But if he is required to complete a return is it necessary to include...