To encourage giving through the Payroll Giving Scheme known as Give as You Earn (GAYE), whereby tax relief is given through the PAYE system and monies passed to charity, the government has, since April 2000, added a 10% supplement to all such donations. The supplement was expected to run out on 5 April 2003 but has been extended for one further year to 5 April 2004.
Higher rate taxpayers making donations under the Gift Aid Scheme can now carry the higher rate relief back to the previous tax year and obtain the benefit of the relief 12 months earlier than before. The catch is that the election can only be made up to the time that the tax return for the earlier year is filed. Please talk to us if you are planning any charitable donations to make sure you don't miss out on the benefit of obtaining the relief earlier.
From April 2004, self assessment taxpayers will be able to donate their tax repayments to charity using the tax return. We can't imagine that this will prove to be the most popular initiative ever! However, from the charity’s point of view, in order to be included in the list of participating charities, it must already be registered with the Inland Revenue. Further information is available by calling the helpline on 0845 3020203.