Hey there! Sign in to join this conversationNew here? Join for free
x Turn on thread page Beta

Gift Aid donations watch

Announcements
    • Thread Starter
    Offline

    0
    ReputationRep:
    I am registered as self-employed and normally add any money I give to charity (Cancer Research, British Heart Foundation, WWF...) to my expenses so that I can claim tax back on any of my donations.

    I've had a couple of these organisations asking me if I mind them claiming tax back on my donations through Gift Aid.

    Does this mean that I will have to remove these donations from my books so that I do not have them included in my business expenses? This is the impression I have at the minute.

    I don't mind removing them from my books, I just need to make sure so that I don't end up getting fined or something by HMRC.

    Also, does anyone know of a way I can find out which charities are claiming tax back on my donations? As I've sort of forgotten! Maybe I could just ring HMRC?
    Offline

    0
    ReputationRep:
    Have you looked at this yet?

    http://www.hmrc.gov.uk/individuals/giving/gift-aid.htm
    Offline

    0
    ReputationRep:
    (Original post by hardstyleGuru)
    I am registered as self-employed and normally add any money I give to charity (Cancer Research, British Heart Foundation, WWF...) to my expenses so that I can claim tax back on any of my donations.

    I've had a couple of these organisations asking me if I mind them claiming tax back on my donations through Gift Aid.

    Does this mean that I will have to remove these donations from my books so that I do not have them included in my business expenses? This is the impression I have at the minute.

    I don't mind removing them from my books, I just need to make sure so that I don't end up getting fined or something by HMRC.

    Also, does anyone know of a way I can find out which charities are claiming tax back on my donations? As I've sort of forgotten! Maybe I could just ring HMRC?
    No you wont have to remove them gift aid simply allows the charity to claim a percentage of the donation back from .gov you won't have to take it off your expenses claim.
    Offline

    17
    ReputationRep:
    (Original post by hardstyleGuru)
    I am registered as self-employed and normally add any money I give to charity (Cancer Research, British Heart Foundation, WWF...) to my expenses so that I can claim tax back on any of my donations.

    I've had a couple of these organisations asking me if I mind them claiming tax back on my donations through Gift Aid.

    Does this mean that I will have to remove these donations from my books so that I do not have them included in my business expenses? This is the impression I have at the minute.

    I don't mind removing them from my books, I just need to make sure so that I don't end up getting fined or something by HMRC.

    Also, does anyone know of a way I can find out which charities are claiming tax back on my donations? As I've sort of forgotten! Maybe I could just ring HMRC?
    I would double check this, however I think only companies can claim donations as a deduction from profits for tax purposes.

    If you are a sole trader/ partnership I am not convinced donations are a taxable deduction, I think relief is restricted via your tax return to Gift Aid payments where the net you pay, say £80 is grossed to £100 and only higher rate relief, if you are a higher rate taxpayer, is available,

    The charity receives £80 net from you and claims the £20 basic rate relief from the Gift Aid back from HMRC.

    I think this logically makes sense, otherwise the tax relief would be 20% or 40% of the amount you pay via your reduction in profits plus the charity receiving the 25% uplift (20% of the gross equivalent)

    I have not worked in professional practice for some years, so am somewhat rusty, so I would check on HMRC website, however if I am correct you should not be claiming the deduction against profits.
    Offline

    17
    ReputationRep:
    As a follow up, following cut from HMRC website,

    "Gifts of money from sole traders and partnerships

    All gifts of money that sole traders make to charity through Gift Aid are treated in the same way as gifts from any other individuals. So the normal Gift Aid rules apply."

    There are different rules when you gift stock/ equipment/ staff time, in these circumstances these are deductions from profits

    http://www.hmrc.gov.uk/businesses/gi...employed.htm#3
    • Thread Starter
    Offline

    0
    ReputationRep:
    Thanks for all the advice, wasn't expecting so many replies

    I did have a look on http://www.hmrc.gov.uk/individuals/giving/gift-aid.htm last night but reading from it just seems to go way over my head (reading about taxes is so boring!)

    So I think I may just give them a ring tomorrow and find out for sure what someone in my position is entitled to.

    Thanks again
 
 
 
Poll
Do you agree with the proposed ban on plastic straws and cotton buds?

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.