We all like to help local charities and as we near the World famous Maldon Mud Race on 14 May 2023, which has raised over £30,000 and broken countless washing machines over the years, now is a good time to look at the tax opportunities that come from Gift Aid

Gift Aid is the largest instrument for tax-efficient giving to charities. It applies to any donation whether large or small, regular or one-off.  Taxpayers can help the charity to claim additional tax paid at the basic rate and further relief can be claimed via Tax Returns for higher rate taxpayers.

The tax relief may also be carried back to reduce the tax payable for the previous tax year. For example:

You give to charity: £1,000
Charity reclaims tax: £250
Total value of your gift: £1,250

So a gift worth £1,250 to the charity could cost you as little as £687.50.

Did you know that donated goods can also be accompanied by a Gift Aid declaration, so that when the charity shop sells the goods, the donor is invited to Gift Aid the proceeds. This provides similar benefits for higher and additional rate taxpayers.

We are in the process of collating Tax Return information for our clients and so do remember to include any charitable donations made so that tax relief can be claimed.

In addition to our main premises in Braintree, the Lambert Chapman Maldon office is open to visitors by prior arrangement. We’d be happy to meet you on-site, or give us a call if you have any queries about your next Tax Return or charitable donations that you have made or wish to make in the future.

The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.

Lambert Chapman Chartered Accountants

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