Charities to take £70m hit from Budget tax changes
A £70m loss for charities looms after Budget income tax changes
The charity sector could lose out on as much as £70m following changes to the
income tax thresholds in the Budget.
will give 25p back to charities for every pound donated by a UK taxpayer,
rather than 28p.
A £1 donation is treated as the net after tax, so £1.28 minus 22% equals £1.
So the 2p income tax cut loses charities 3p for every pound donated.
Charities’ Tax Reform
Group told the FT that the Treasury
should offset the change by reducing the sector’s VAT bill.