Call us 0800 0523 555

Contact Us

*COVID-19 update: Many of our shops and offices are now open for face to face meetings with strict social distancing measures in place. We also offer telephone and video consultations for all new clients in order to discuss your needs. Find the latest COVID-19 information available for your business.

Mature donor

My wife has recently been looked after by a local hospice during her Cancer treatment. Now she’s out and on the mend, I’d like to make a donation to the hospice to say thank you for looking after her. I am over 65 but still run my own sole trade.  Can you tell me the tax implications please?  

You may be able to get some tax relief for the donation. To do this, firstly make sure that you have signed a Gift Aid declaration from Cancer Research, and that you have completedall of the necessary details on this form.

Next, make sure you will pay enough tax to cover the tax the charity will be claiming. To check this, divide your donation by four, and make sure it is less than your tax bill for the tax year the donation is made.

As you normally complete a tax return, you can tell HMRC about your Gift Aid donation by completing the section on Gift Aid payments.

Because you are over 65, you will be receiving the larger, age-related Personal Allowance. To calculate the value of your Personal Allowance, HMRC will subtract the amount you donate plus the basic rate tax (that is, the ‘grossed’ up donation) from your total income and use the reduced figure. This may have the effect of increasing your Allowance if your income was above the relevant 'income limit' that applies, and therefore, more of your income could be tax-free!

If you would like to discuss this or any other accountancy or tax matter, please feel free to contact your local TaxAssist Accountant.

Call us today to make an appointment with your local office

Consultations available by telephone or video

0800 0523 555

Contact Us