Gift Aid

[Mosschopz]

I recently spent a day out with friends at a NT property. While sorting out the tickets my friend declined the gift aid on his. The price was no different. I didn't like to ask but why would you refuse a charity picking up a few extra beans if you are a tax payer (he was)...

[TitusPullo]

Gift Aid isn’t dangerous, what a ridiculous thing to say. Just keep an eye on it. The only time I have ever seen issues is when people have donated thousands in a year where their income has dipped. A lot of charities rely on Gift Aid.

[londonrach]

Titus..im self employed...it is in my case. Especially if going back 4 years as last year i had a baby so no income and we struggling without a sudden tax bill. Luckily i knew how dangerous gift aid is so have refused. Very glad i did now. Op maybe now understands why people turn gift aid down. I dont understand why you would give access to your tax but thats me..

[childmaintenanceserviceinquiry]

Titus: dangerous from a financial point of view. It is a legally binding commitment that if you commit to gift aid for a charity and have not paid enough tax then you personally are liable. The wording also mostly includes that any payment you have made to that charity for the previous 4 years are also gift aided.

Whenever I am asked to gift aid I am never asked if I pay enough tax to cover the payment or have done over the previous 4 years. I am a chartered accountant of over 30 years. I query it every time. Staff are shockingly trained. I wasn't aware that I could amend this standard wording. This tax year I have done so.

[TitusPullo]

I am aware of what Gift Aid is and how it works thanks. I am also a Chartered Accountant who has spent a stint in the voluntary sector.

Just be aware of what you are gift aiding vs your expected income. That is it. If you are really worried wait until 5th April and then make a donation. No one was ever made bankrupt by HMRC because they gift aided their entry fee to a NT property. We are talking a couple of quid. I doubt HMRC even check to that level, in fact I’m pretty sure they don’t.

You are scaremongering and could cause people who pay an average level of tax and donate to charity every now and again to stop providing charities with a vital source of income by making it sound like if you Gift Aid your £10 donation, HMRC are going to send you a big fat bill and take your house.

I have seen Gift Aid charges in the thousands but guess what they had donated hundred of thousands. I’m not saying it doesn’t happen, but just because it does doesn’t make the system inherently dangerous for your average earner/donor.