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.
By Jo Nockels
Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.