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From The Next Tax Year My Salary Will Be In The High Rate Band

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kaw69 | 21:57 Thu 27th Feb 2014 | Jobs & Education
9 Answers
Hi
From the next tax year my salary will be around £1500 above the basic 20% to the 40%!!! this is the first time that I have been in this band of tax.
I don`t mind paying the extra in tax,,, but I give about £1000 a year to charity
and always use Gift Aid so the charity gets the extra but as a higher tax rate earner does the charity get the extra?

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http://www.hmrc.gov.uk/individuals/giving/gift-aid.htm Explains it in above link
22:01 Thu 27th Feb 2014
No, but you can get your tax code adjusted so you only pay tax in effect at 20% on this £1000 rather than 40%
No, they get the basic and you can claim the difference between the lower and higher rates back for yourself.
You can also put more into your pension, maybe as AVCs, and this may bring you back below the 40% tax threshold.
Question Author
Am I reading it right from the links that
because I am a higher rate tax payer I can claim the difference between the 20% and 40% on a £1000 donation!!!!! I can claim back £250.
Not £250, no.
From what you say, the most you can get back (via an adjustment to your tax code meaning you pay less tax each month) is £200
^...per annum
Question Author
Thanks to all replies

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