Maximize Your Impact and Minimize Your Tax

Did you know that your charitable contributions can play a significant role in reducing your tax liability? Here's how it works, based on guidelines provided by HM Revenue & Customs (HMRC): Income Tax Relief: When you donate to a registered charity in the UK, you may be eligible for Income Tax Relief. This means that the amount you donate is deducted from your total taxable income for the tax year in which the donation is made. For example, if you donate £100 to charity and you're a basic rate taxpayer, HMRC adds £25 to your donation (assuming 20% tax relief), effectively reducing the cost of your donation to £75. Higher Rate and Additional Rate Taxpayers: If you pay tax at the higher or additional rate, you can claim the difference between the higher or additional rate of tax and the basic rate of tax on your donation. For example, if you're an additional rate taxpayer, you can claim back up to 37.5% (45% - 20%) of your donation through your tax return. Gift Aid: When you make a donation and you're a UK taxpayer, the charity can claim an additional 25p for every £1 you donate through Gift Aid. This doesn't directly reduce your tax threshold, but it increases the value of your donation to the charity, providing them with more resources to carry out their work. By donating before the end of the tax year, you can take advantage of these tax benefits while supporting causes close to your heart. Remember to keep records of your donations and claim any tax relief you're entitled to when filing your tax return. Your generosity not only makes a difference in the lives of others but also helps you make the most of your financial planning." Your support today will go towards the #Move4Food initiative at Stellenbosch University to address the current crisis of food insecurity being faced by over 5000 current students.