Gift Aid with income tax

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:09AM in AAT student discussion
what happens with Gift aid on income tax again<BR><BR>With extending the tax band<BR><BR>

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Gift Aid with income tax

    You need to add it to the band - increase the 31400 by the amount of gift aid.<BR><BR>If gift aid was 1560, then you would do 1560/78x100 to get 2000.<BR><BR>Then you would increase the band by 2000 to 33400.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Gift Aid with income tax

    <BR>It extends the basic band by the amount of the Gift Aid, therefore, it only applies to higher income tax payers, who are entitled to an 18p rebate per £1 on the overpaid tax. <BR><BR>If it is payroll giving, it is deducted at source anyway, so when you know someone's salary, you can immediately deduct the 'Gift Aid' at net and not worry about further calculations. (If they are highr rate band expand the basic rate by the same amount as the donation)

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