Wealthy charity supporters are being reminded to pick up their gift from the taxman.
Phil Waller, national tax partner for the charity sector and tax partner in the Birmingham office of international accountancy firm Mazars, says many forget that under the Gift Aid system both the higher rate taxpayer and the charity share the tax relief.
He said: “The donor can claim back the difference between the higher rate at 40 per cent or 50 per cent and the basic rate of 20 per cent on the value of the gift. If £1,000 is donated, the gross donation is £1,250, so a donor liable at the 40 per cent tax rate could claim back £250 (20 per cent of £1,250) and a donor liable at the 50 per cent rate would see £375 returned.
“Yet many higher rate taxpayers do not claim this even though entitled to do so, either because they didn’t know or couldn’t be bothered.
“I urge them to do so. After all, when it comes to Gift Aid you shouldn’t look a gift horse in the mouth!”
Donors can choose from three different ways of claiming the tax relief – via self assessment tax return; using form P810 available from their Tax Office; or telephoning HM Revenue & Customs on 0845 300 0627 and asking them to make a change to their tax code.
Mr Waller added: “If a higher rate tax payer does not wish to keep the tax relief due to them then don’t let it go to waste. Give it to the charity of your choice rather than leave it unclaimed.”
