Gift Aid

[NickNick]

Assuming that you work in a ltd company set up with low salary and dividends up to the threshold. Are you a "UK tax payer" for the purposes of gift aid?

[d000hg]

Yes. But only to a certain limit... like you can only reclaim gift aid on giving up to your salary, hopefully someone can clarify more precisely. Unless you are giving rather serious amounts, you are OK though, is the key point. I give relatively high amounts - 10% of my personal income - and checked this with my accountant in the past.

[Clare@InTouch]

Yes. You just need to make sure the tax credit is enough to cover the gift aid amount that will be claimed by the charity, otherwise you'll end up paying the gift aid back yourself via your tax return.

[ASB]

Yes. You just need to make sure the tax credit is enough to cover the gift aid amount that will be claimed by the charity, otherwise you'll end up paying the gift aid back yourself via your tax return.

I just wonder how and if that is policed. When I've done bits of gift aid I sign the declaration, but how in practical terms, can they genuinely check these all back to the tax payer. I mean the national trust make their claim and send back 20,000 declarations. Are they really going to bother?

[Clare@InTouch]

I just wonder how and if that is policed. When I've done bits of gift aid I sign the declaration, but how in practical terms, can they genuinely check these all back to the tax payer. I mean the national trust make their claim and send back 20,000 declarations. Are they really going to bother?

It'll come up on your tax return, not the charity side. I've seen it before where a client gave donations of a few thousand but had no income in the year. He ended up with a tax liability equal to the gift aid value that the Government will pay back to the charity.