Good Aid

[Dilbertian]

I want to give a donation from a windfall I have had. My actual income is very low. How much would I need to be earning in order for the charity to be able to claim Gift Aid on a donation of, say, £1000?

Sorry, that's a stupid auto correct in the title.

It’s not based on what you’re earning, but on what tax you’ll pay in that year. That’s because if you only look at earning, there may be other things already “using up” your tax relief - like pension contributions, or childcare vouchers.

You can use gift aid as long as your gift isn’t more than 4x the amount of tax you’ll pay this year.

So if you want to donate £1000, then for the charity to claim the full £250 gift aid with that to make it £1250 then you would have had to have paid £250 tax this year.

£250 tax x 4 = £1000 = maximum donation pre addition of gift aid.

I think the only thing 'using up' my tax relief is pension contribution. I don't get childcare vouchers. What else would I have to discount? Would it appear on my payslip?

I have two jobs. One has a pension. How do I calculate how much tax I will pay this year?

Your payslips will show the exact amount of tax paid. Can’t you work it out from that? Even if your pay is variable, if it averages out then you use all your payslips so far this year as a guide. Plenty of online calculators too, but nothing’s as exact as your own payslip!

Thanks for your advice. I can't believe how naïve I am about this!

One last question (I hope!) You say you would have had to have paid £250 tax this year. So do I have to wait until I have paid that much before making the donation, or can I do it at any point if I am confident I will pay that much by the end of the year?