Gift and Aids

Gift and Aids

Gift and Aids allow those people who are subject to UK income tax to complete a simple, short declaration that they are a UK taxpayer. Any cash donations that the taxpayers make to the charity of making a statement are taken as being made after deduction of income tax at the basic rate, the charity group can reclaim the basic rate income tax paid on the gift from HMRC UK tax and payment authorities. For a basic rate the company employees, this adds approximately 25% to the value of any gift made under Gift and Aid. Higher rate taxpayers can claim income tax relief, above and beyond the amount requested directly by the charities. According to the tomorrows  people organization, the rate of the relief for higher rate taxpayers in 2011 is usually 20%, the difference between the basic rate (20%) and the higher rate (40%) of income tax, although recipients of dividend income (taxed at 10% and 32.5%) can can achieve a higher rate of tax relief (22.5%).