Just finished- it turns out I had less left on my 10% trial pledge than I thought, so I gave a bit extra.
Most went to the Humane League UK appeal earlier this year, I gave $500 to the EA Forum Donation Election, and I just gave £400 to the EA Animal Welfare Fund.
PS- Are donations tax deductible in the UK (Besides giftaid)? I’ve been operating on the assumption that they aren’t, but if they were, I could give more.
PS- Are donations tax deductible in the UK (Besides giftaid)? I’ve been operating on the assumption that they aren’t, but if they were, I could give more.
I think the short answer is ‘depends what you mean?’. Longer answer:
Income tax is fully tax deductible. But if you are a basic rate (20%) taxpayer, this is what Gift Aid is handling and there isn’t much further to do. If you are a higher or additional (40% or 45%) taxpayer then there is additional relief you can claim.
Some pseudo-taxes on higher earners care about Adjusted Net Income. Confusingly, ANI is not your after-tax income, it’s roughly your Gross Income minus Pension Contributions minus Donations; more detail at link. So donations do reduce this. Things which care about ANI:
These are withdrawn entirely if your ANI exceeds £100k.
Note this is a cliff edge not a taper, and if it applies to you you are probably thousands worse off just above £100k ANI vs. just below. Bizarrely this means donating money can leave you better off.
If you are counting Gift Aid towards your pledge it is recommended to calculate your pledge amount based on your pre-tax income. If you are not claiming Gift Aid or any tax benefit then it is recommended to calculate your pledge amount based on your post-tax income.
Just finished- it turns out I had less left on my 10% trial pledge than I thought, so I gave a bit extra.
Most went to the Humane League UK appeal earlier this year, I gave $500 to the EA Forum Donation Election, and I just gave £400 to the EA Animal Welfare Fund.
PS- Are donations tax deductible in the UK (Besides giftaid)? I’ve been operating on the assumption that they aren’t, but if they were, I could give more.
I think the short answer is ‘depends what you mean?’. Longer answer:
Income tax is fully tax deductible. But if you are a basic rate (20%) taxpayer, this is what Gift Aid is handling and there isn’t much further to do. If you are a higher or additional (40% or 45%) taxpayer then there is additional relief you can claim.
This post goes into more detail on this.
National Insurance is not deductible.
Some pseudo-taxes on higher earners care about Adjusted Net Income. Confusingly, ANI is not your after-tax income, it’s roughly your Gross Income minus Pension Contributions minus Donations; more detail at link. So donations do reduce this. Things which care about ANI:
Higher Income Child Benefit Charge
If you have children, this kicks in as your ANI goes from £60k to £80k.
Withdrawal of the Personal Allowance
This kicks in as your ANI goes from £100k to £125k.
30 hours ‘free’ Childcare /​ Tax Free Childcare
These are withdrawn entirely if your ANI exceeds £100k.
Note this is a cliff edge not a taper, and if it applies to you you are probably thousands worse off just above £100k ANI vs. just below. Bizarrely this means donating money can leave you better off.
Thank you! That’s really helpful. I also just saw Will’s post, which has also been useful.
Here’s a summary of UK tax treatment of charitable donations. As I understand it, donations are sometime deductible, and sometimes eligible for gift aid, but never both.
GWWC has a somewhat complicated treatment of gift aid; you can count gift aid towards your pledge, but