Child Tax Credit

[elizabethchpmn]

Don't know if this is the right place for this or not but...

Did you know that any money you Gift Aid is not counted in the calculation they use to work out your income for CTC purposes? I didn't - but I do now!

Don't suppose that's in perfect technical language, but hope it's comprehensible.

[meagain]

Originally Posted by elizabethchpmn

Did you know that any money you Gift Aid is not counted in the calculation they use to work out your income for CTC purposes? I didn't - but I do now!

I did (though in all fairness I was working for the IR on the very thing at the time).

For those unfamiliar with Gift Aid, the beneficiary claims an allowance of 28% of the donation back from R&C, so £1 donated works out to £1.28. More telling, £1 comes from a donation of 78p (£1-22p, the basic rate). The reason you deduct this from statements of taxable income is that while you have paid tax on the money when you were paid, it is effectively "untaxed" when the Gift Aid is paid.

[Glenn UK]

How much can i 'gift aid' before i need to show receipts?

Oh and can i get 40% back rather than 28%??

LOL

[meagain]

What's all this about receipts and you getting something back?

[Glenn UK]

Sorry it was meant tongue in cheek, we get CTC but have never thought of including anything we donate to charity,

I was wondering if you needed to prove for example that you had donated money say on sprot relief hence the question about receipts.

Secondly if i could make a claim for back payment,

As i siad it was meant tongue in cheek.

Glenn

[meagain]

Originally Posted by Glenn UK

I was wondering if you needed to prove for example that you had donated money say on sprot relief hence the question about receipts.

Probably not unless it is specifically asked for, since I imagine the charity has to report this to R&C anyway. I imagine those sprots are nicely relieved now

Secondly if i could make a claim for back payment

If you notify changes within 3 months, things should go back, though it will only make a difference if it cuts your taxables by £500 or more.

It has been over a year since I worked at the IR. I left approximately a week before the department became officially known to the public as R&C.

As for the rate, no, the charity doesn't get to claim back higher rate tax (which would equate to a 66% rebate). As such, it's limited to those who pay at least basic rate, and the amount you're allowed to dispose of this way is limited to the amount on which you pay basic rate (to prevent people from "hiding" money in bogus charities).