Feel Good For A Fiver!

Here's how £5 a month can give you a buzz and reduce your tax bill at the same time.

I'm sure most people would agree that modern life is increasingly demanding -- it's not called the `rat race' for nothing. One technique that many people use to cope with everyday stresses and strains is a spot of `retail therapy'. In other words, they cheer themselves up by going shopping for a few treats. However, in my experience, the temporary boost from buying a new outfit, gadget or other item is very short-lived. Indeed, programmes such as the BBC's Spendaholics show how compulsive shoppers can end up digging a very deep hole. Often, the colossal debts they amass cause over-spenders to become desperately depressed. However, there is a way to spend some of your money which makes you feel permanently good. What's even better is that the taxman chips in to make you feel even happier. I am, of course, talking about giving to good causes via Gift Aid. Chinese philosopher Confucius sums up this philanthropic feeling rather well: "He who wishes to secure the good of others has already secured his own."Giving Via Gift Aid The good news is that the UK has one of the most generous systems of charitable giving in the world. Indeed, for every pound which a taxpayer donates to a registered charity via Gift Aid, the good cause receives £1.28. The extra 28p comes from HM Revenue & Customs, which grants 22% tax relief on these gifts. Thus, 78p becomes £1 and, therefore, £1 magically becomes £1.28. What's more, higher-rate (40%) taxpayers can reclaim extra tax relief by declaring gifts on their annual tax returns. This results in a further 18% being clawed back, with the refund on £1.28 amounting to 23p. Thus, for a higher-rate taxpayer, a gift of £1.28 to a charity costs just 77p. In order to make a Gift Aid donation of any size, you simply confirm that you are a taxpayer giving via Gift Aid. Typically, this can be done by verbal confirmation or by ticking a box on a form. All major charities accept payments by cash, cheque, credit or debit card, direct debit or standing order, which makes being generous both easy and convenient. The Victims of Crime Trust Now I'd like to make an appeal on behalf of a small charity which badly needs donations to keep up its vital work. For fourteen years, the Victims of Crime Trust (VOCT; Registered Charity no. 1032867) has been providing personal support to the families of individuals who are victims of murder or manslaughter. The VOCT speaks up for victims' families, provides close personal and family support and counselling, legal advice, and social networking (invaluable help from other bereaved families). The VOCT was founded by PC Norman Brennan, a campaigning police officer for 28 years, who has first-hand experience of the impact of crime on victims, families and communities. There are more than a hundred different support groups to help rehabilitate criminals and offenders. However, the VOCT is one of a precious few charities which provide comprehensive, professional support for the victims of crime. Since its formation, the VOCT has helped hundreds of high-profile victims. In 1994, it dealt with 37 cases; today, that figures is closer to 300 cases per year. Nevertheless, the VOCT finds it hard to win grants from government and other organisations. This is because the vast majority of charitable donations and large-scale grants go to very large, well-known charities that employ professional fund-raisers and large-scale marketing. Hence, many small charities such as the VOCT struggle to raise enough funds to develop and grow. In a recent survey, the VOCT found that 97% of the public believe that the criminal-justice system fails victims and society. Thus, if you'd like to do something to help these victims' families, then I'd urge you to donate a fiver a month to the VOCT. You can do this by completing and returning the standing order form here. Sixty pounds a year may not mean much to you, but it will help the Victims of Crime Trust to increase its regular income. As a result, it will win more grants from government and elsewhere, further boosting its coffers. In addition, you'll get a warm glow from knowing that your money is helping some very vulnerable Brits. Thanks for listening! More: Charity Fools discussion board | Eight Great Tax-Dodging Tricks| Make A 28% To 67% Return Today