One of the main fundraising events of the year is happening again on the 15th March, and as per usual FMB will be organising some fun for this event.
Do you realise that the Government allows charities to claim back tax on donations? This tax relief is called ‘Gift Aid’.
Gift Aid is great because it means charities get extra money added to their donations at no extra cost to the donor. For every £1 donated, the charity currently receives £1.25 when you add Gift Aid.
In order to make a Gift Aid donation you’ll need to make a Gift Aid declaration. The charity will normally ask you to complete a simple form and include your name, address, name of charity and details of your donation.
Another way of giving to charity is through payroll, called Payroll Giving.
Payroll Giving allows you to make donations to charity directly from your pay or company/personal pension. The donations are made after your National Insurance contributions are calculated but before Income Tax is worked out and deducted. Because of this, you only pay tax on what's left. This means that you get tax relief on your donation immediately - and at your highest rate of tax.
e.g. You pay tax at the basic rate of 20% and authorise a monthly donation of £10. That means you save £2 tax (20% of £10) so the actual cost of the donation to you is £8.
You can use Payroll Giving if:
- you are an employee and you get paid weekly or monthly through PAYE
- you get a company and/or personal pension and your provider deducts tax through PAYE
In addition, your employer or pension provider needs to run a Payroll Giving Scheme. If they don’t, you could ask if they would be willing to start one. They can find out about Payroll Giving and contact details for Payroll Giving Agencies by clicking here.
We have run a payroll giving scheme for a number of years and it takes very little setting up and administering.