Advent Day 2 – Gift aid tax relief advice

𝗗𝗮𝘆 𝟮 – 𝗚𝗶𝗳𝘁 𝗔𝗶𝗱 𝗔𝗱𝘃𝗶𝗰𝗲

With the end of the tax year approaching, it’s the ideal time to consider how Gift Aid can benefit both you and the charities you support. As part of our comprehensive service at Digivolve Accountants, we provide expert advice on all aspects of Gift Aid donations, ensuring you maximise the relief you claim on your tax return. Whether you’re a regular giver or considering your first charitable donation, we can help you navigate the process effectively.

Remember, every donation you make under Gift Aid can increase the value of your gift to the charity by 25%, at no extra cost to you. Plus, if you’re a higher rate tax payer, you can also claim back the difference between the rate you pay and the basic rate on your donation.

For example, If you donate £100 to charity will end up with £125, This £125 then saves 20% tax for a higher rate tax payer and 25% for an additional rate tax payer so £25 or £31.25. Meaning the £100 could actually cost £75 after tax for a higher rate tax payer.

Donations can also be made now and carried back to the 22/23 tax year to save tax on an earlier year. Useful it’s you’ve just gone over the £50k or £100k thresholds.

Stay informed, optimise your giving, and maximise your tax benefits. For more insights and personalised advice, do not hesitate to get in touch with us. Let’s make your generosity go further! #DigivolveAccountants #GiftAid #TaxAdvice