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Rules on waiving income or donating to charities

HMRC has published a new press release that provides some advice for people choosing to give up their income to support their business or donate to charity during the Coronavirus (COVID-19) pandemic.

Employers, directors and employees have several options to support a business or employer, including:

There are also options to donate to charities. The Payroll Giving scheme allows employees to make a tax free donation to charity directly from their pay if their employer runs a payroll giving scheme which has been approved by HMRC.

Gift Aid Donations allow charities and community amateur sports to claim 25p worth of tax relief on every pound donated. Higher rate or additional rate taxpayer can claim additional tax relief on the difference between the basic rate and their highest rate of tax.

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