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Tax efficient giving
- SIGN A GIFT AID DECLARATION FORM
Please make sure every gift you make to Prostate UK
is a Gift Aid donation. Using Gift Aid means the charity will receive
an extra 28% at no extra cost to you. When you make a Gift Aid donation
to charity, it is treated as net – i.e. after tax has been deducted.
For example if you give £100, tax can be reclaimed and added
to your donation making it worth £128 to us.
- Who can use Gift Aid ?
Anyone who has paid enough Income Tax or Capital Gains Tax in the
current financial year to cover the amount reclaimed by the charity
can use Gift Aid.
- How does it work ?
You need to complete a simple declaration for the charity. This can
be done in writing, over the phone or online. The declaration can
apply to all past donations you have made (since April 2000) and
to all future donations you make.
- DONATE THROUGH YOUR SALARY
If you are able to give through your payroll, your gift is made from
your salary before it is taxed. So a monthly gift of £20 will
cost a basic-rate taxpayer only £15.60 from their net pay or
if you are a higher-rate taxpayer only £12.
- Who can use Payroll giving ?
Anyone who is paid through PAYE can use payroll giving to donate
to charity. However, your employer must have a payroll giving scheme
in place for their employees to make donations in this way.
- How does it work ?
You complete a simple form provided by your employer, nominating
the charity or charities you want to support and the amount you
want to donate to each. Your employer will then deduct the donations
from your salary and arrange for them to be sent to the nominated
charities. For more information, please take a look at www.cafonline.org
- GIVING SHARES
Giving shares to charity is a great way of unlocking capital and passing
it on to good causes. Gifts of shares are eligible for full personal
Income Tax relief and exempt from Capital Gains Tax relief. If you
are a basic-rate taxpayer, a gift of £1,000 of listed shares
could reduce your Income Tax bill by £220. If you are a higher-rate
taxpayer it could reduce your bill by £400. For more information
please visit www.allaboutgiving.org or www.sharegift.org/sharegift.
- BENEFITS FOR HIGHER–RATE TAXPAYERS
As a higher-rate taxpayer, you can claim 18% personal tax relief (the
higher rate, 40%, minus the basic rate, 22%) on the gross value of
your donation. This works out at £23 for every £100 you
donate. To reclaim the 18% tax relief simply include details of all
your Gift Aid donations on your Inland Revenue Self Assessment form.
You can include donations made in the current tax year as well as
for the year you are completing your return. Many people choose to
donate the 18% they reclaim to charity, which is also eligible for
Gift Aid. To donate to Prostate UK, you will need
our charity code inland revenue number which is XR6505.
