In this week’s Q&A, Julian Payne ATT, tax advisor at Croner-i, explains how to claim Gift Aid tax relief to reduce your tax bill when completing self assessment
By this time of the year, many individuals will have submitted information to their accountant to prepare a self assessment tax return for 2023/24.
Some taxpayers will have an amount and mix of different types of income that lands in parts of the income tax landscape where the marginal rate is very high. These effects are driven by the taxpayer’s adjusted net income (section 58 Income Tax Act 2007 (ITA 2007)..
An individual may reduce his or her adjusted net income by either: (i) making a personal contribution to a registered pension scheme where the scheme will treat it as made net of basic rate income tax that the scheme’s administrator will claim from HMRC; and / or (ii) making a donation to a UK charity under Gift Aid.
