6 ISSUES FOR £6 Subscribe to Essex Life today click here

How you can benefit from Gift Aid

PUBLISHED: 09:49 27 March 2017 | UPDATED: 09:57 27 March 2017

David Carr and Julie Walters presenting a cheque to the Hanningfield Sailability Project. Photo E C Financial Services Ltd

David Carr and Julie Walters presenting a cheque to the Hanningfield Sailability Project. Photo E C Financial Services Ltd

Archant

If you’re a UK taxpayer, the money in your pocket has already been subject to tax.

Stephen Franklin presenting a cheque to CHESS. Photo E C Financial Services Ltd Stephen Franklin presenting a cheque to CHESS. Photo E C Financial Services Ltd

By choosing to gift money to charity, that charity is then able to claim the basic rate of tax (20%) back from HMRC. If you routinely donate to a number of different charities you’ll have to register for Gift Aid with each one – this usually involves a simple form.

What you can claim Gift Aid on:

• A voluntary gift of money for which the you do not receive a benefit

• Charity membership subscriptions

• Charity auction donations (if the bid is more than the market value)

• Sale of goods on your behalf – some charity shops can now claim Gift Aid on the proceeds of your donated items.

Julie Walters presenting a cheque to Alex Dowsett of ‘Little Bleeders’. Photo by E C Financial Services Ltd Julie Walters presenting a cheque to Alex Dowsett of ‘Little Bleeders’. Photo by E C Financial Services Ltd

If you pay income tax at the higher rate (40%) you can benefit from Gift Aid by more than just the warm feeling of altruism. By informing HMRC of your donation when you complete your self-assessment tax return, you’ll save a further 20%.

Gifting large amounts to charity in a Will can also save Inheritance Tax (IHT). Currently, estates over £325,000 (for an unmarried person) are subject to IHT of 40% on the excess. Leaving 10% of your net estate to charity decreases the IHT to 36% - potentially a considerable saving for your beneficiaries.

Every quarter at E C Financial Services Ltd we donate £250 to a charity in and around Chelmsford. Whilst all charities are considered, we’re particularly interested in smaller charities. ECFS is a small business and we understand the importance of having a ‘local mind’ - we attend careers evenings at nearby schools and our senior adviser Stephen Franklin offers free auto-enrolment seminars to local business owners. We enjoy seeing the effects of philanthropy in our surroundings and find that smaller charities limit their scope to the local area.

This quarter we’re focusing on mental health services in and around Chelmsford. As Independent Financial Advisers we’re in the business of making people financially comfortable, but we know money doesn’t buy happiness. ‘Mind’ predicts that one in four people will experience a mental health issue each year and a donation of just £8.00 can allow a call handler from the charity speak to a person in need of support.

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Essex Life visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Essex Life staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Essex Life account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

More from Essex Life

Yesterday, 09:11

As the trend for investing in personal experiences over consumer goods continues to grow, general manager of Wivenhoe House hotel Oliver Brown is reporting continued success for the four-star luxury hotel just outside Colchester

Read more
Wed, 16:17

From James Bond to Batman, Essex has been known to bask in a little Hollywood glitz. Here are 19 that have used our county’s incredible locations on the big screen

Read more
Wed, 15:18

Raw Made Simple, based in Great Totham, is the new way to feed your dog - with lots of happy pooches to attest for its deliciousness

Read more
Tue, 12:13

Byrhtnoth, one of Maldon’s most famous sons, is still remembered for his part in the Battle of Maldon, protecting the port against Viking invaders, but Petra Hornsby meets a new breed of locals taking on an altogether different battle

Read more
Tue, 11:43

Stephanie Mackentyre speaks to three local producers of alcoholic beverages who are helping to put some fizz and pop into the joys of summer in the county

Read more
Mon, 17:32

The benefits of social wellbeing and community spirit are manifested best through volunteering, and Braintree is a hotbed of helpers, discovers Petra Hornsby

Read more
Mon, 17:22

Summer has officially arrived here in Essex, so it’s time to grab your picnic blankets and sunglasses and begin ticking off your bucket list…

Read more
Mon, 12:42

For those still figuring out how to spend your Friday through Sunday, we’ve rounded up 5 of Essex’s best things to do to ensure no second of your weekend is wasted

Read more
Thursday, May 17, 2018

She may not be one for looking too far into the future, but following the stunning success of her young music career, Pixie Lott is now searching for her marital home – and an Essex village is her firm favourite

Read more
Monday, May 14, 2018

1066 is a year we can all recall from our history lessons at school. 950 years since this momentous period in our nation’s past, Adam Jones profiles how the Normans changed the landscape of our county forever

Read more
 
Great British Holidays advert link

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter


Follow us on Twitter


Like us on Facebook

Topics of Interest

Food and Drink Directory

Local Business Directory

Essex's trusted business finder

Job search in your local area




Search For a Car In Your Area

Property Search