Giving to charity
Charitable donations made under the Gift Aid scheme allow a charity to claim back 20% basic rate tax on any donations. And if you’re a higher rate taxpayer, or additional rate taxpayer, you can end up with money back in your pocket.
Donors who are higher rate taxpayers can claim back the tax difference between the higher rate and basic rate on the donation. This way, a cash gift of £80 will generate a refund of £20 for the charity, which receives £100. Donors can claim back tax of £20, making the net cost of the gift only £60.
Tax relief against 2017/18 income is possible for charitable donations made between 6 April 2018 and 31 January 2019, providing the payment is made before filing the 2017/18 tax return.
Always remember to record charitable gifts made.