50% tax rate payers.
If a 50% tax rate payer received (say for instance) a £100K bonus, the tax man would take £50K in tax and the poor permie would be left with £50K.
The permie now donates the £50K to charity and under the gift aid scheme, the charity claims back about 20% direct from HMRC.
So charity now has £60K, the tax man has £40K and you have none.
If you then put this onto your tax return, does the remaining £40K go to the charity or do you receive this as an offset to the tax you owe?
If it goes to offset the tax you owe, your £100K has benefitted you by £40K and the charity by £60K and the tax man has got nothing from your bonus?
Can anyone please let me know if I'm on the right track?
If a 50% tax rate payer received (say for instance) a £100K bonus, the tax man would take £50K in tax and the poor permie would be left with £50K.
The permie now donates the £50K to charity and under the gift aid scheme, the charity claims back about 20% direct from HMRC.
So charity now has £60K, the tax man has £40K and you have none.
If you then put this onto your tax return, does the remaining £40K go to the charity or do you receive this as an offset to the tax you owe?
If it goes to offset the tax you owe, your £100K has benefitted you by £40K and the charity by £60K and the tax man has got nothing from your bonus?
Can anyone please let me know if I'm on the right track?
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