TaxAdministrationFall in tax rate will hurt charities

Fall in tax rate will hurt charities

Charities expect to lose more than £90 m a year when the lower rate of income tax is introduced

Charities are bracing themselves against a yearly loss of more than £90m when
the income tax rate falls from 22% to 20% next month.

Although the change is good news for consumers, it will reduce the amount of
Gift
Aid
charities can reclaim on donations, according to
The
Press Association
.

Gift Aid enables charities to reclaim the tax paid on one-off donations,
which means when Gift Aid is included, every pound donated to charity is
actually worth £1.28 to the organisation in question.

But from April 5 the value of donations will drop to £1.25 for every pound
donated, which will reduce charities’ income by more than £90 million a year –
the equivalent of vaccinating 18 million children against childhood diseases.

Related Articles

New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

1w Emma Rawson, ATT Technical Officer
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3w Austin Clark, Reporter
Are you ready for the Trusts Registration Service?

Administration Are you ready for the Trusts Registration Service?

1m Helen Thornley, ATT Technical Officer
European Commission close to anti-tax avoidance package

Administration European Commission close to anti-tax avoidance package

1y Fraser Simpson, Reporter
‘Significant recovery’ for HMRC customer service, claims boss Thompson

Administration ‘Significant recovery’ for HMRC customer service, claims boss Thompson

1y Fraser Simpson, Reporter
Advisers bullish despite Brexit concerns

Accounting Standards Advisers bullish despite Brexit concerns

1y Fraser Simpson, Reporter
Brexit: Five questions accountants should be asking

Accounting Firms Brexit: Five questions accountants should be asking

1y Fraser Simpson, Reporter
UK votes to leave EU – accountancy profession reacts

Accounting Firms UK votes to leave EU – accountancy profession reacts

1y Fraser Simpson, Reporter