"Gift Aid" - any experts out there?
Posted: Tue Sep 12, 2017 3:11 pm
The HMRC website says:
" Paying enough tax to qualify for Gift Aid
Your donations will qualify as long as they’re not more than 4 times what you have paid in tax in that tax year (6 April to 5 April)."
My question is: what exactly does "paid" mean in this context? Let's say it was calculated that I owed £1,000 tax relating to the 2016/17 tax year, and I actually paid this to HMRC in June 2017 (so during the 2017/18 tax year).
Does that mean that in 2017/18 I can pay £4,000 under Gift Aid (the tax year during which the actual £1,000 cash payment to HMRC was made, even though it relates to tax liabilities accruing in the PREVIOUS tax year)?
I'm assuming this is not correct and the matching of the Gift Aid payment is made against the tax liability accrued, not necessarily paid, during the same tax year? So in my example, I could pay Gift Aid £4,000 during 2016/17 even though my £1,000 tax liability for 2016/17 is not actually paid to HMRC until a later date in 2017/18?
Sorry, difficult to explain clearly, but I'm sure there's an easy answer!!!
" Paying enough tax to qualify for Gift Aid
Your donations will qualify as long as they’re not more than 4 times what you have paid in tax in that tax year (6 April to 5 April)."
My question is: what exactly does "paid" mean in this context? Let's say it was calculated that I owed £1,000 tax relating to the 2016/17 tax year, and I actually paid this to HMRC in June 2017 (so during the 2017/18 tax year).
Does that mean that in 2017/18 I can pay £4,000 under Gift Aid (the tax year during which the actual £1,000 cash payment to HMRC was made, even though it relates to tax liabilities accruing in the PREVIOUS tax year)?
I'm assuming this is not correct and the matching of the Gift Aid payment is made against the tax liability accrued, not necessarily paid, during the same tax year? So in my example, I could pay Gift Aid £4,000 during 2016/17 even though my £1,000 tax liability for 2016/17 is not actually paid to HMRC until a later date in 2017/18?
Sorry, difficult to explain clearly, but I'm sure there's an easy answer!!!