Making donations to your favourite charities carries the obvious personal pay offs for a good deed done. But were you aware there is also a financial pay off too?
Donations made under the gift aid scheme are topped up by the government, meaning the charity get an extra 20% on top of what you give. As a higher rate tax payer, ticking this box will mean more of your income falls in the lower rate. Additionally, if you’re over the £100K threshold, these donations can also help you preserve your tax free personal allowance.
Those of you in the basic rate band have the benefit of making a larger donation for your money, so as long as you have a tax liability of at least 25% of the donations you make in the year, there’s no reason not to elect for a gift aid.
Don’t worry if you haven’t donated by 5th April 2018, as the donations you make throughout 2018/19 can be carried back to 2017/18.