Personal Tax

Q & A. Tax back following Gift Aid donation.

Q. My child’s school is asking parents to make a one-off donation to help with much-needed school funds. If I complete a gift aid form for my donation, will I be able to can claim tax back on the payment?

A. If the school is a registered charity, either registered with the Charity Commission or with HMRC, you can make gift aid payments to them – both regular and one-off payments.

Under gift aid your donation is treated as being made net of basic rate tax (at 20%) tax and the charity claims the tax back from the government. So, if you make a donation of £100 under the Gift Aid scheme and you’re a basic rate taxpayer, the charity is able to claim back tax of £25 from the government, which means the charity receives £125, but it costs you only £100.

However, a higher rate taxpayer can claim 20% (the difference between the higher rate of tax at 40% cent and the basic rate of tax at 20%) as a tax deduction on the total value to the charity of the donation. So, on a gift of £100, a higher rate taxpayer can reclaim £25 (20% of the gross donation of £125). The claim is usually made via the individual’s self-assessment tax return.

Specialist Accountants for Ecommerce Businesses

Over recent years the number of ‘online traders’ or ‘Ecommerce’ businesses has grown considerably and in the next ten years we believe the market will at least double!

Hanley & Co began advised several substantial eBay traders over ten years ago and due to the significant growth of Amazon FBA (and many other markets) we have been very fortunate to have attracted a significant number of these businesses as clients from across the UK (and overseas).

We consider ourselves to be ‘the specialists’ in this area. We are regularly contacted by businesses whose accountants just don’t handle (or understand) this sector. 

Most of these businesses need (and expect) an online bookkeeping system that caters for the complex reports flowing from Amazon, PayPal, Stripe etc.  They also need confidence that their VAT and taxes are being properly handled.

If you know of an Ecommerce business proprietor that is struggling for advice from their advisors and accountants or need certainty about their bookkeeping, VAT registration requirements (including EU / international), VAT calculations and schemes (and of course MTD) please ask them to contact us for a chat!