Reclaim tax - charitable donation

[SnowBells]

In previous years, when I was doing some freelance work, I could reclaim some of the tax on charitable donations (for higher rate tax payer). However, as I no longer do freelance work, but work full-time for a large company, I no longer have to do the self-assessment tax return apparently.

How do you then reclaim that higher rate tax???

Sorry to be a numpty here...

There's nothing stopping you submitting a self assessment anyway. That's what I do each year because I'm not confident that PAYE always works in my favour! Aside from charitable donations, do you make any private pension contributions? If you're a HRT payer then those potentially qualify for tax-relief.

Thanks a lot, Cogito. It's all a bit confusing...

Anyone who is a HRT payer should do a self-assessment unless they have absolutely nothing else going on financially other than their PAYE-taxed salary.

If you find self-assessment confusing I can highly recommend a bit of software called 'TaxCalc' which guides you gently through the process, keeps a running total of whether you owe them any money or they owe you, and then allows you to submit it online at the end. You need a password and login for the HMRC website but then it's fairly straightforward. That's what I'll be doing this weekend, in fact. :)

You don't have to do SA if they haven't asked you to. In the past, I've just written a letter saying I'm a higher rate payer and I made the following Gift Aid payments and pension contributions during tax year X. They can work out the tax and may then compensate you by adjusting your tax code or sending a cheque.

What you may find useful is to look at a copy of the SA form, so you can see exactly how they like the information to be presented. (For example, with Gift Aid, they like to know what part of the donations were one-offs rather than regular giving).

The hard bit is working the postal address to send your letter to if you do it that way!

Of course, SA has the advantage that you can do it all online and it will go through everything so you can make sure you paid the right level of tax.

That's why I do SA. Not for the rebates - although they are welcome - but because, despite having a ridiculously uncomplicated income, my tax bill was never right. I got a bill for £1000 one year and a rebate for the same amount the next. Since I've been doing SA I don't get that any more.

I've just found the last letter I did for this and pasted the text below (with obvious redactions!). The address was on correspondence I'd had from HMRC so it may not be right for others.

HMRC
Pay As You Earn
PO Box 1000
Newcastle upon Tyne
NE98 1WY

Dear Sir / Madam

NI No: xxxxxxxxx

Higher rate tax relief

During the tax year ending 5 April xxxx, I paid tax at the higher tax rate. I am writing to inform you of Gift Aid payments and pension scheme contributions that I made during the tax year and request that you calculate any relief that I am due.

For 2010/11, I made donations under Gift Aid of £xxxx. Of this, one-off gifts accounted for £xxxx.

My gross pension contributions were £xxx for which I have already been credited relief of £xxx.

Yours faithfully