Tax Rebates & Refunds

How charitable giving could get you a tax rebate next year

March 21, 2013
Posted in Tax Rebates — Written by Jennifer

With money being very tight at the moment for many families, you might not think that you can afford to give any money to charity. However, there is a way that charitable giving can be mutually beneficial – ensuring your chosen cause gets a financial boost whilst you enjoy a tax rebate next year.

Here’s how it works. If you are a UK taxpayer and you give to charity, the charity can use something called Gift Aid to make your donation go further. Gift Aid basically entitles the charity to claim tax back on your donation, meaning that a donation of £100 would actually be worth around £125 to the charity.

What this means for you is that when you are filling out your next self-assessment form, you will be able to claim tax back on your donation. Charitable giving is tax deductible, meaning that either you will pay less tax when your return is processed and your total tax for the year calculated, or you could receive a tax rebate in the next tax year.

This system not only encourages charitable giving by making it more attractive to people through tax breaks, but it also helps you to save money at the same time that you are donating to a good cause.

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