Charity Donations and Gov Contribution


S

Stephen GoldenGun

Does anybody know how much the Government will give to the charity if it
receives x amount of pounds from donors, private and corporate?

For example if a private person donated £10 per month to a registered
charity. How much will the charity recieve from the Government in the rebate
that is offered as part of the tax rebate due to charitable donations being
non taxable.
 
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D

David Floyd

Does anybody know how much the Government will give to the charity if it
receives x amount of pounds from donors, private and corporate?

For example if a private person donated £10 per month to a registered
charity. How much will the charity recieve from the Government in the rebate
that is offered as part of the tax rebate due to charitable donations being
non taxable.
If the donor is a tax payer and is able to sign a gift aid form, then
the charity is entitled to claim £10 x 22 / 78 i.e. £2.82. (22% of
£12.82 = £2.82).

Additionally, if the donor is a higher rate tax payer then he clan claim
higher rate tax relief on the gross donation. i.e. (£10 + £2.82) x
((40-22)%) i.e. £2.31

DF
 
R

Ronald Raygun

David said:
If the donor is a tax payer and is able to sign a gift aid form, then
the charity is entitled to claim £10 x 22 / 78 i.e. £2.82. (22% of
£12.82 = £2.82).

Additionally, if the donor is a higher rate tax payer then he clan claim
higher rate tax relief on the gross donation. i.e. (£10 + £2.82) x
((40-22)%) i.e. £2.31
And, what's more, if the donor is a starting rate taxpayer, the
charity still gets the £2.82, but the taxpayer has to give £1.54
back to the government. £10 donated are presumed to have come
from £12.82 earned minus £2.82 tax, but if only 10% (£1.28) tax was
actually paid, yet the govt chips in £2.82, then it will claw back
the difference from the donor.

Needless to say, if the donor is a non-taxpayer (and shouldn't really
have signed the Gift Aid form, but I suppose he could have done so
by mistake), the govt will want the whole £2.82 back from the donor.
 
D

David Floyd

And, what's more, if the donor is a starting rate taxpayer, the
charity still gets the £2.82, but the taxpayer has to give £1.54
back to the government. £10 donated are presumed to have come
from £12.82 earned minus £2.82 tax, but if only 10% (£1.28) tax was
actually paid, yet the govt chips in £2.82, then it will claw back
the difference from the donor.
That is not so. The taxpayer only has had to pay sufficient tax to
cover tax on gift aid donations; it doesn't have to be at basic rate.
Needless to say, if the donor is a non-taxpayer (and shouldn't really
have signed the Gift Aid form, but I suppose he could have done so
by mistake), the govt will want the whole £2.82 back from the donor.
Quite so

DF
 
D

David Floyd

That is not so. The taxpayer only has had to pay sufficient tax to
cover tax on gift aid donations; it doesn't have to be at basic rate.
I forgot to also add that gift aid payments are also covered by dividend
income. The only way that I can think of that notional tax on dividends
is repaid.
E.G.

1)Assume gift aid payment of £100 = £128.20 Gross.
2)Taxpayer needs to have paid at least £28.20 Tax.
3)Assume no other income other than dividend income of £253.80
4)Notional tax on dividend income is £28.20.
5)No further tax to pay.
6)Charity receives tax refund of £28.20

DF
 
R

Ronald Raygun

David said:
That is not so. The taxpayer only has had to pay sufficient tax to
cover tax on gift aid donations; it doesn't have to be at basic rate.
Fair enough, he has to give a substantial fraction of his taxable
income for this claw-back to kick in. So if the guy's income is
£1282 more than his allowances (tax due £128.20) and he gives £1000
to charity, he will get asked to pay an extra £153.85 of tax.

If he only gives £500, he will only be asked for £12.83.
He won't be asked for anything if he donates £454 or less.
 
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S

Stephen GoldenGun

Ronald Raygun said:
Fair enough, he has to give a substantial fraction of his taxable
income for this claw-back to kick in. So if the guy's income is
£1282 more than his allowances (tax due £128.20) and he gives £1000
to charity, he will get asked to pay an extra £153.85 of tax.

If he only gives £500, he will only be asked for £12.83.
He won't be asked for anything if he donates £454 or less.

Thankyou Respected Gentlemen for your answers, I see clearly that whatever
future contributions we may be lucky enough to recieve will have to entirely
be controlled and administered by a firm of accountants, although I
understand the basic principle of what your saying, really I am quite lost
when it comes to the "nitty gritty" of it...

All the different levels of tax, the myriad of rules and regulations that
constantly change, absolutely no chance could I ever have to work that
out...with any surity, thats allways the way I feel with accounting, even if
a businessman had the time to catch up, to learn, etc. by the time you had
caught up with all the rules and regs, they will instantly have changed.

Time Management, really these kind of situations must surely be "classic
accountans only territory" meaning that some tasks, can adequately be done
by non accountants, by business people or others who have general knowledge,
but there comes a point, that is purely should be left to the accountants
domain.
 
D

David Floyd

Thankyou Respected Gentlemen for your answers, I see clearly that whatever
future contributions we may be lucky enough to recieve will have to entirely
be controlled and administered by a firm of accountants,
Not necessarily, the forms obtainable from the Charities Division of the
Inland Revenue (Bootle) are quite easy to follow. And you (as a
Charity) are not concerned about the donor's status. Just be sure you
have a signed Gift Aid form - much safer than telephone authorities -
and you can then claim 28%(approx) for each Gift Aided gift.

DF
 
S

Stephen GoldenGun

David Floyd said:
Makes no difference whether it's masses or just a few.


This has been said before in this thread. If a donor gives a tenner to
a registered charity or recognised Church and that donor is willing to
sign a Gift Aid form then the Charity/Church can claim £2.82 (28%approx)
from the Inland Revenue.


This has all been explained before in this thread. The donor has had to
have paid sufficient tax to cover 28% of the net gift. If not then it's
not in their interest to sign a Gift Aid form.


So long as you are running a Registered Charity or recognised Church AND
the donor gets no significant benefit from his gift then there should be
no problems and the form filling for the Charity is not too onerous.

DF
Ok thankyou very much for your advice, I will check it out further, and
perhaps it is not beyond my remit. As I said, we are in the initial stages,
adn our application is still going to take at least three months anyway. So
we are still in the process of doing the ground work.
 
P

Paul Garner

David Floyd said:
Makes no difference whether it's masses or just a few.


This has been said before in this thread. If a donor gives a tenner to
a registered charity or recognised Church and that donor is willing to
sign a Gift Aid form then the Charity/Church can claim £2.82 (28%approx)
from the Inland Revenue.


This has all been explained before in this thread. The donor has had to
have paid sufficient tax to cover 28% of the net gift. If not then it's
not in their interest to sign a Gift Aid form.
Furthermore, IIRC the model forms provided in the Revenue's guide to
charitable giving include sufficient info to explain matters to the donor -
and then it's the donor's choice whether to sign up for gift aid or not.

'Proper and correct financial advice' includes (per NCVO) ensuring that
where possible you maximise income on behalf of the charity, and in this
contact I would take that to mean encouraging donors to give you the tax
breaks.
So long as you are running a Registered Charity or recognised Church AND
the donor gets no significant benefit from his gift then there should be
no problems and the form filling for the Charity is not too onerous.

DF
By the way, the government at one stage were giving an extra 10% as well as
the tax back - has that stopped now?
 
D

David Floyd

Furthermore, IIRC the model forms provided in the Revenue's guide to
charitable giving include sufficient info to explain matters to the donor -
and then it's the donor's choice whether to sign up for gift aid or not.
Quite so. But I feel that the wording is not accurate enough. It does
not make it clear that the donor must pay enough tax to cover ALL Gift
Aid donations made in the tax year.
By the way, the government at one stage were giving an extra 10% as well as
the tax back - has that stopped now?
I believe that is where Gift Aid is made via a Payroll Scheme.

DF
 
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Peter Saxton

On Thu, 17 Jul 2003 15:56:40 +0100, "Stephen GoldenGun"

blah, blah, blah

Incredible! You have a business in Poland, you are a telemarketer, you
rent out property, you are planning to be a financial adviser, you are
starting a web design business, you're making a tenfold return from
your charge out rate of less than 8 pounds an hour, you save ten
thousand pounds from each company you run by saving VAT, now you are a
charity .... I'm amazed that you have all this spare time to bullshit
on the internet!



(e-mail address removed)
 
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S

Stephen GoldenGun

Peter Saxton said:
On Thu, 17 Jul 2003 15:56:40 +0100, "Stephen GoldenGun"

blah, blah, blah

Incredible! You have a business in Poland,
Wrong as usual Mr. trolly.... "dormant business in poland/eastern europe"

you are a telemarketer, "trying get sporadic work at that yes"..


you> rent out property, "wrong again troll, show me where I said that"..
you are planning to be a financial adviser, "no I'm not, I asked what
products you can sell without being qualified, you troll. lol"

you are starting a web design business, "yes, thats right, I can do it
without any investment".

you're making a tenfold return from your charge out rate of less than 8
pounds an hour, "wrong again you liar, I said I can generate a ten fold
return by investing my money in my business the one that is dormant" your
trolling and I know it..and you know it LOL but your not intelligent enough
to do it cleverly LOL your a real windup merchant..

you save ten
thousand pounds from each company you run by saving VAT, " I did not say I
had each company, it is a future structure" again your wrong and your lying,
because each statement you make is completely out of context and completely
untrue...I was speaking about a business structure....from a theoretical
point of view..I would not be asking about it, if I already had it in place
would I ? But as your a troll, thats fine I do'nt expect you to make sense
LOL

now you are a charity ... Noooo I'm not a registered charity, I never said
that, I said it takes three months to become a registered charity, and yes I
am going on a sponsored bike ride along with some others to raise money for
a project.

.. I'm amazed that you have all this spare time to bullshit on the internet!
Well, I have obtained valuable valuable priceless information , from my
postings on these forums..information from people who are having alot more
experience than you or me..about certain issues..what do you achieve from
these forums? LOL


LOL, nice try but your accusations are all wrong! I don't have time to go
through them all and your not important enough to explain everything for
your simple brain to comprehend..I know your trolling so your wasting your
time.
 

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