Gift aid eligibility as a full time student


S

sk8terg1rl

Hey all,

I am a full time student with a very small annual income for tutoring
(about £5k/p.a.). The rest of my income comes from fortunate
investments from the stock market with 90% of my life's savings. My
stock market income is less than the capital gains tax AEA, but I do
pay stamp duty on it. So all in all I shouldn't pay income or CG tax.

My college's accountants have charged me income tax for the tutoring
but I'm in the process of reclaiming it as I believe it too falls
under the AEA for income tax. I was told by an accountant friend it
isn't necessary for me to fill out returns form for Inland Revenue if
everything falls below the respective AEAs.

I've filled out a couple of Gift Aid forms in the past. All I put was
my home address, date of birth and amount paid. No signature. I've
since checked HMRC's website regarding Gift Aid and it seems I'm not
eligible for it as I don't "pay enough UK income tax and/or capital
gains tax themselves to cover the amount of tax the charity will
reclaim".

Have I committed an offence by mistakenly filling out Gift Aid forms
when I'm not eligible?

Can I expect Inland Revenue knocking on my door asking me for details
of my (suspected) income, as I've filled out a Gift Aid card and they
have no record of income from me?

I have nothing to hide but I am not very organised or pedantic about
keeping records of income and it would be a bloody pain to be asked to
fill out & prove exactly how much I got from income/CG. Some tutoring
is done out-of-college and tend to be paid with cash and I don't know
exactly how much I get except I'm not wanting (that badly!) for money.

Thanks everyone :)
skate xx
 
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A

Aaron B

Hey all,

I am a full time student with a very small annual income for tutoring
(about £5k/p.a.). The rest of my income comes from fortunate
investments from the stock market with 90% of my life's savings. My
stock market income is less than the capital gains tax AEA, but I do
pay stamp duty on it. So all in all I shouldn't pay income or CG tax.

Why would you pay stamp duty on share income? Isn't it only on property
purchases? That's when I had to pay it anyway.
 
R

Ronald Raygun

Aaron said:
Why would you pay stamp duty on share income? Isn't it only on property
purchases? That's when I had to pay it anyway.
You don't pay stamp duty on share income (i.e. dividends), but you do
pay stamp duty when you buy shares. It's conceivable that if shares
are held in a manner whereby the income is re-invested by buying more
shares, that you would be paying stamp duty regularly, which could
give the impression that one is paying stamp duty on share income.
 
R

Ronald Raygun

sk8terg1rl said:
Hey all,

I am a full time student with a very small annual income for tutoring
(about £5k/p.a.).
You need to be more precise, because "about" £5k is very near the level
at which income tax begins to become chargeable.

Do you have any savings which pay interest (as distinct from dividend
income from shares)? The interest is taxable income and generally has
20% deducted at source, so you need to include the gross interest in
your total income.
I've filled out a couple of Gift Aid forms in the past. All I put was
my home address, date of birth and amount paid. No signature. I've
since checked HMRC's website regarding Gift Aid and it seems I'm not
eligible for it as I don't "pay enough UK income tax and/or capital
gains tax themselves to cover the amount of tax the charity will
reclaim".

Have I committed an offence by mistakenly filling out Gift Aid forms
when I'm not eligible?
No, but you should tell HMRC in your tax return (if you get one) how much
you have donated via gift aid. All they will do is charge you the tax
which the charities would have reclaimed in respect of your donations.

If you don't get a tax return, you should mention in the communication
by which you are seeking to get your tutoring income tax back, that you
have made donations under gift aid (and how much), and HMRC will take
that into account.

Meanwhile, until you expect to become a taxpayer, you should tell your
charities that you are no longer eligible and that they should cease
until further notice to reclaim tax in respect of your donations.
 
A

Aaron B

Ronald Raygun said:
You don't pay stamp duty on share income (i.e. dividends), but you do
pay stamp duty when you buy shares. It's conceivable that if shares
are held in a manner whereby the income is re-invested by buying more
shares, that you would be paying stamp duty regularly, which could
give the impression that one is paying stamp duty on share income.
Thanks.
 
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T

Tim

... annual income for tutoring (about £5k/p.a.)...
... I'm in the process of reclaiming it as I believe
it too falls under the AEA for income tax...
You "believe"?

... I am not very organised or pedantic
about keeping records of income ... and
I don't know exactly how much I get ...
If you haven't got much of a clue as to how much you've
earnt, but you think it was close to the tax threshold
(£5K), how can you be sure it was *below* it? :-(
 
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