Reasons to take advantage of gift aid.
We have all had that person we sponsored for running a marathon or some other challenge to raise funds for charity. However many people are unaware that making charitable donations under the gift aid scheme (for UK registered charities) is beneficial both to the charities as well as reducing the donor’s tax bill.
The mechanics of the application of the relief are that the donations are deemed to be made net of basic rate tax. The charity will claim the extra 25p for every £1 donated from the government on top of the donation.
The taxpayer can make a claim in their tax return and will receive an increase to their basic rate tax band of the amount of the grossed-up donation. This allows higher and additional rate taxpayers to claim tax relief (20% and 25% respectively) on their donations. Those with an income of between £100 000...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.