Thought Id start this one going because its rather dead on this board at the moment and I suppose all my usual muckers are either at the Stella tennis event watching Dim Tim (lose again) or at Henly Regatta eating cucumber sandwiches (they wish,...NOT).

Anyway please feel free to just talk to yourself blast away and let it go on any company or subject you wish. Just wish Id thought of this one before.

cheers GF.

a bit obtuse (i think that's the right word) it must be said ..... the charities are very thankful indeed for the "gift aid" and i'm not convinced that that money actually comes from the government (aka other tax payers)

i'm happy to be told i'm wrong - many take great pleasure in that - but as i understand it, the donor foregoes his right to claim the donation against his tax bill, so the charity gets it instead

http://www.bbc.co.uk/news/uk-politics-24983159

UKIP has the cash

That's the point cynic they do reclaim the tax element on the donation, below is from HMRC website.

To make a Gift Aid repayment claim using the HM Revenue & Customs (HMRC) Charities Online Service, you need to record your donations on a Gift Aid schedule spreadsheet, and attach it to your claim.

Apologies for not (perhaps) being clearer but it is monday, it is also monday for you ha! ha!
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Hays Hays Hays

Milli as now closed that gap with fat Dave.

Just another week on PMQs and he'l be ahead........

electionista‏@electionista15 Nov
UK: Ipsos poll: 35% of voters satisfied with PM @David_Cameron, 56% dissatisfied. 31% satisfied with Labour's @Ed_Miliband, 54% dissatisfied

george - is "they" the charity or the donor? ...... surely it cannot be both as otherwise you'ld have double tax relief

gf do you think that Ed Milliband should sack Ed Balls.
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The charity only gets the tax on the donation at the basic rate 20%. The donor can claim back the difference between the basic rate and the highest rate he pays.

thanks hays ..... so to clarify for george, other taxpayers don't stick their hands in their pockets at all!

Donor gives £10,000; Charity gets £12,000; Donor claims back £2,500 (45%-20%) So the taxpayer outlay is £4,500. So to clarify for cynic, other taxpayers DO stick their hands in their pocket.
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you're far too clever for me george!

however, my dinosaur brain tells me that the donor merely pays less tax than he would have done, but for sure no one else has had his hand in the till or suffered ..... the taxpayer (aka HMRC) does not fork out at all; the exchequer is just a neutral conduit for the transaction

of course, as far as i can see, if the donor does not sign up for "gift aid", then the donor saves full tax on the whole amount

A patronising remark, none the less here is another more accurate example.

You earn £125 and £25 tax is deducted from this at the basic rate of 20%. This leaves you with £100. You then donate the £100 to charity through Gift Aid.

The charity can claim an extra £25 (the tax you paid at basic rate) from the government to make your total donation £125.

Higher rate taxpayers

If you pay tax at the higher rate of 40% or above, you can claim back the difference between the higher and basic rate on the value of your donation:

Example

You donate £100 to charity through Gift Aid - they claim 20% to make your donation £125. You pay 45% tax so you can personally claim back £31.25 (£125 x 25%).
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2517GEORGE....re Milli sacking Balls.

Lets not forget George that Alan Johnson was Millis nos 1 chancellor when he took over.

To sack him now wouldnt look very good.

I do admit balls comes over as a a bit of a rough street fighter in the same vein as John Prescott, but their is no doubt in my mind that hes a very inteligent economist who called the last couple of years spot on and pointed out we didnt need to as a country go through all this austerity that has now left living standards floundering.

sticky - you are/were an accountant ...... re the above on charitable donations, is the exchequer (other taxpayers) out of pocket?

I asked the question in light of Ed Balls disloyalty to Ed Milliband re the leaked emails.
He didn't call it right, he was completely wrong.
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Under the old system, you gave to charity and claimed back the whole of the tax on it. This has been the case for many years in most countries.

The difference now is that the basic tax element can be given to a charity as part of the transaction.

The exchequer is only out to the point that claiming tax relief on charity causes decreases in the tax revenue they receive, but that has always been the case with charity donations.

so i am correct in saying that no one is actually out of pocket ..... the worst that can be said is that the exchequer receives (a bit) less

Labour ex minister with his nose in the trough.

18 November

Former Rotherham MP Denis MacShane today pleaded guilty at the Old Bailey to making bogus expenses claims of nearly £13,000

The ex-Labour minister admitted false accounting by putting in fake receipts for £12,900 of “research and translation” services.

He used the money to fund trips to Europe, including to judge a literary competition in Paris.

Asked to enter a plea to the charge in a hearing at the Old Bailey, MacShane replied: “Guilty.”

Sentencing was adjourned until December 19, and he was granted unconditional bail

The 65-year-old stood down as Labour MP for Rotherham last year.

he can join all the others from all parties

cynic you are incorrect you seem to have forgotten in my original post I stated the wealthy donor (inferred rate 45%) does not pay tax, so no tax had been paid by the donor on the gift to the charity, but he is still able to reclaim 25% of that gift, so the exchequer has not only forgone the taxed income (gone to charity) but has had to pay the donor the difference between higher and basic rate income tax, and this difference has been paid by the taxpayer.
ps I bet Fred thinks it's christmas.
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