Are you a higher or additional rate taxpayer? If so, did you know that you're eligible to claim back up to 25% on the gross total of your charitable donations? Here's how it works: John is a higher rate taxpayer, paying a maximum 40% tax on his income. This March, John has decided that he'd like to support his community by making a donation to one of his local charities. John uses the localgiving.com search function to find a list of charities in his area. He selects his favorite and opts to make a donation of £100. By taking the Gift Aid, John adds an extra 25% to the total amount. This means that the charity will now receive £125 for John's donation of £100. And that's not all! As a higher rate taxpayer, John is eligible to claim back the difference between the basic rate of income tax (20%) and the highest rate of income tax he pays (40%) on the total gross donation amount. This equates to 20% of the full £125 received by the charity, enabling John to claim back £25 on his self-assessment form for the tax year. By making a Gift Aid donation, John's net spend of just £75 has turned into £125 for the local charity. That's an extra £50 to go towards key projects to improve his community. Charity begins at home - support your local charities and build a better future for your community. This tax year ends on the 5th of April 2014. Donate now at localgiving.com.
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Video instructions and help with filling out and completing How Form 2350 Charities
