Tax Efficient Giving

Higher Rate Taxpayers

If you pay tax above the Basic rate, you can claim the difference from HMRC between the basic rate of tax claimed by the charity on your donation and the higher or top rate of tax you actually pay, currently set at 40%-46% depending on your income threshold and location in the UK.

You can do this either through your Self Assessment tax return, or by asking HMRC to amend your code.

For example, if you donate £100 to Edinburgh Steiner School Trust Ltd, we claim Gift Aid to make your donation £125.  You pay tax at 40% so you can personally claim back £25 (£125 x 20%).

Donating Straight From Your Wages

Payroll Giving,  also known as Give As You Earn, is a flexible scheme which allows anyone who receives their pay through payroll to give regularly and on a tax-free basis to the charities and good causes of their choice.

This tax-efficient option especially suits Higher and Top Rate taxpayers, as the donation amount is deducted before income tax is calculated.

This way of giving would make a £100 donation given to Edinburgh Steiner School Trust through Payroll Giving only cost you between £54 – £60 (depending on your exact tax rate).

Alternatively, you can pass this benefit on to your chosen charity. For higher tax payers, payroll giving is the only way to pass on your higher percentage of tax to the charity of your choice, as Gift Aid is set at 25%.

Basic rate taxpayers are also eligible to pay this way; though many find it simpler to adjust the amount of donation to factor in the Gift Aid element when considering what size of gift to make.

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Giving with Gift Aid

Gift Aid allows charities to claim basic rate tax on your donation if you are a UK taxpayer.

By opting in to Gift Aid Giving, your chosen charity can claim an extra 25p for every £1 you give – whether you are in Scotland, or any other part of the UK, and regardless of the rate of tax you pay).

It will not cost you any extra.

It is simple to make a Gift Aid declaration: tick the box on the online form or fill out a short form for the charity you are donating too. This one form covers donations for up to four years.

To start Gift Aid Giving today, select your chosen amount and be taken to a Gift Aid Declaration form: here