Comic Relief Does Gift Aid

With Red Nose Day fast approaching, don't forget that charitable donations can save you tax and put more money into a charity's pockets.

I don't know about you but I've been voting for Tara during the current run of Comic Relief Does Fame Academy. She's come a long way since her first night on stage ten days ago when she, er, 'sang' an Elton John song while looking like someone who'd woken up in a sauna the morning after a night of being dragged through a hedge backwards!

Fortunately, Ms Palmer-Tomkinson has calmed down a bit and she's now eagerly learning how to actually sing. I think she rocks. And, of course, it's all in the name of 'charidy'.

If you don't know what I'm talking about, so be it. Maybe Emmerdale is more your thing. But you can't have failed to notice that it's Red Nose Day this Friday and, if you feel inclined to hand over some of your cash while enjoying some comedy moments throughout the evening, then make sure you do it in a tax-efficient way.

Through the Government's Gift Aid scheme, if you're a taxpayer making a donation, charities can reclaim the tax you've paid on it from the taxman. So if you give £10 using Gift Aid, your donation is worth £12.80 to the charity. And higher rate taxpayers can cut their own tax bills by reclaiming the difference between the 22% and 40% rates through their tax returns.

The important thing is to remember that if you're a UK taxpayer, you need to make sure you tick the relevant Gift Aid box on any forms you're filling in or to tell the phone operator (if you're donating over the phone on the night) that you want Gift Aid to apply.

If you prefer to donate in a planned and regular fashion then use direct debits or standing orders which makes it much easier for charities to reclaim the tax. Most will have a sign-up option on their website.

You can also give to charity on a regular basis if your employer has set up a Payroll Giving scheme whereby you get tax relief on your donations. And you're not liable for Capital Gains Tax when you make a gift of assets, such as land, to charity, even if you've made a taxable profit on it.

As well as giving money through Gift Aid and Payroll Giving, you can get income tax relief for gifts to charity of shares. Sharegift accepts small holdings of shares, particularly those which are not worth selling because it would cost more than they are worth. You can offset the value of the donated shares against your tax bill.

Red Nose Day - Make A Donation. And Vote for Tara on 09011 32 30 09!