Wealthy charity supporters across Dorset are being reminded to pick up their gift from the taxman. That’s the message from the Poole office of international accountants and business advisory firm, Mazars, who say that many supporters forget that, under the Gift Aid system, both the higher rate taxpayer and the charity share the tax relief.
Mazars partner David I’Anson explains: “The donor can claim back the difference between the higher rate at 40 per cent or 50 per cent and the basic rate of 20 per cent on the value of the gift. If £1,000 is donated, the gross donation is £1,250, so a donor liable at the 40 per cent tax rate could claim back £250 (20 per cent of £1,250) and a donor liable at the 50 per cent rate would see £375 returned.
“Yet many higher rate taxpayers don’t claim this even though entitled to do so, either because they didn’t know or couldn’t be bothered. “If a higher rate tax payer doesn’t wish to keep the tax relief due to them then don’t let it go to waste. Give it to the charity of your choice rather than leave it unclaimed.”
Mazars advises that donors can choose from three different ways of claiming the tax relief – via self assessment tax return; using form P810 available from their Tax Office; or telephoning HM Revenue & Customs on 0845 300 0627 and asking them to make a change to their tax code.