Tuesday 11 April 2017, Since 2007, the London Marathon has held the Guinness World Record for the largest single annual fundraising event. This record has been broken every year by this annual event, and understanding Gift Aid rules properly can mean even more money for charity. ICAEW explains how to work out if you could claim tax relief on charitable giving in your tax return ahead of the London Marathon on 23 April.
“Gift Aid enables charities to reclaim an amount equivalent to the basic rate of tax on all donations. If the donor is a higher or additional rate tax payer, paying 40% or 45% income tax on part of their income, they can claim a reduction in their tax bill on the difference between the two rates on Gift Aid donations made.”
Caroline adds: “Tread carefully, there are some important things to remember. If the charity does not reclaim the tax this money stays with HM Treasury. And if you do not claim the money back on your self assessment return or by asking for a change to your tax code, your refund also stays with the government. Be careful not to sign a gift aid form if you will not be paying enough tax as HMRC may ask you to pay the tax reclaimed by the charity.”
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