ListenToTaxman.com

UK PAYE Tax Calculator / Salary Calculator

The number 1 free UK salary calculator tax calculator since 1998. Calculate salary, national insurance, HMRC tax and net pay

Cap could deter some philanthropists after 25 years of payroll giving

Charities claim that Government plans to cap tax relief on charitable donations may deter major donors.

Charities claim that Government plans to cap tax relief on charitable donations may deter major donors.

The Government Payroll giving scheme was set up in 1987. The scheme allows PAYE employees to donate from their gross pay. The previous system particularly benefited those in higher tax brackets who may even find themselves in a position to claim some tax back from HMRC.

The scheme raises over £115 million for charities per annum and in 2010-2011 was responsible for 42% of the UK’s charitable donations. This steadily increases year on year and is one of those most loyal methods of giving. The vast majority of the money raised comes from the highest earners.

In the March budget, George Osborne announced a cap on tax relief for those seeking to claim more than £50,000, to just 25% of their income. This has increased pressure on individuals to give by 6th April in order to receive the maximum possible tax relief.

A survey by Charities Aid Foundation revealed that 83% of donors felt the change would reduce donations. Following the budget a number of charities came together to launch the ‘Give It Back George’ campaign and met Exchequer Secretary David Gauke on 2nd April to discuss their concerns.

This article was published in our News section on 27/04/2012.

Some Guides you may be interested in

  • Scotland Vs England And Wales: What Are The Differences In Tax? There are significant differences to how much tax you pay in Scotland in comparison to England.
  • AirBnb vs long-term-rentals For the holiday maker & professionals alike, it’s safe to say that short-term let platforms - such as AirBnb, Flipkey, or Homeaway - have been a bit of a game changer.
  • Bookkeeper v Accountant Are you paying your accountant to prepare your books? Could you save some money by hiring a bookkeeper? Clare Doherty explains the key differences…
  • 5 Tax changes that may affect you this year Following the start of a new tax year, it’s always useful to stay abreast of changes to your responsibility. Certain legislative updates in 2019 have been overshadowed by the spectre of Making Tax Digital for VAT, causing smaller (but significant) changes to be overlooked.
  • Top Ten Claimable Expenses for Limited Companies Let’s start with a thought experiment. I’ll set the scene. You’re a limited company owner, and you, as the director, are the sole employee. You also - understandably – love learning about tax. You open up the Monday morning paper to find some exciting news - HMRC has hinted there are going to be some big changes in the upcoming UK budget.....
  • Salary vs Dividends A guide to tax efficient remuneration for Limited Company directors for 2019/20.
  • What changes to buy-to-let mortgage interest tax relief for landlords? Undoubtedly the biggest source of tax confusion for prospective landlord clients that we speak to here at TaxKings relates to the changes to tax relief for residential landlords, introduced by the UK Government in April 2017.
  • Top Ten Year-End Tax Planning Tips for Small Businesses Tax planning for small businesses is not always straightforward, in fact it can be a serious minefield for the unwary. The chances are however that you and your business could almost certainly pay less in tax, with help from your tax advisor. Here are some tips to get you started.
  • Making Tax Digital for Small Businesses Making Tax Digital for VAT (MTDfV) comes into effect from 1st April 2019. With Chancellor Philip Hammond announcing in his 2019 Spring Budget that MTD for other taxes will not be mandated until at least 2021, all of our focus is now on the VAT implementation.
  • End of Tax Year planning - Use your Allowances to reduce your tax bill. Last minute Tax Planning. Our guide to what annual allowances you have and how to use them to reduce your tax bill.

More from our News section