Gift Aid – The benefit rule

When someone makes a donation, you might want to give the donor something in return (an item or service) to say thank you. This is known as a ‘benefit’. Literature that tells donors what your charity does eg a newsletter, or a simple plaque to thank a donor, doesn’t count as a benefit.

The value of a benefit is always the value to the recipient, not the cost to your charity or CASC. For most benefits, the value is simply the retail value of the item or service.

If you can’t find out the retail value of an item or service, you must work out how much someone would be prepared to pay. You could, for example, look at the value of similar items or services. Where a benefit is attendance at an event that is not open to the public, the value of the benefit is the cost of the event divided by the number of guests.

You can claim Gift Aid on the donation if the value of the benefit doesn’t exceed certain limits, for example:

Donation                             Maximum value of benefit

Up to £100                          25% of the donation

£101 – £1000                      £25

£1,001 and over                5% of the donation (up to £2,500)

These rules still apply when the benefit is given to a family member or a company run by the donor.

The benefit rules apply to different types of donation, like charity auctions and charity events and may affect the amount you can claim.

You must keep a record of Gift Aid donations you receive and all benefits that were given to donors as a consequence of their donation.

If you want to discuss any of this further then please get in touch 0116 2423400 or info@torrwaterfield.co.uk

Paula McIntosh Administrator

Have you been taxed for your vacation job? If you’re a Student, you will more than likely be able to claim the tax back.

If you have a job when you’re a student you may need to pay Income Tax and National Insurance.

You have to pay:

Your employer will usually deduct Income Tax and National Insurance from your wages through Pay As You Earn (PAYE).

If you’ve paid tax and stop working part way through the tax year you may be able to claim a refund.

Use HMRC’s tax checker to find out if you might have paid too much tax, or contact HMRC.

Fill in form P50 if you’ve stopped working or if you’re not going to work for at least 4 weeks, for example if you’re retired, still looking for a job or returning to study.

If you leave the UK to live abroad, there’s a different way to claim a tax refund on your UK income.

HM Revenue and Customs (HMRC) will normally refund you within:

  • 5 weeks of processing your claim – if you’re expecting a cheque (or ‘payable order’)
  • 5 working days of processing your claim – if you’re expecting a payment into your bank account

It can take up to 25 working days after your claim if your refund is for tax taken from your pay or pension and you have not got a P800 tax calculation.

If you do not get your refund

You should wait 5 weeks after making an online claim and 6 weeks after making a postal claim before contacting HMRC about the payment.

If you would like to discuss any of this further then please get in touch 0116 2423400 or info@torrwaterfield.co.uk

Becky Edwards, Payroll Manager

Tax Reminder – Saturday 19th January

The following Tax Events are due on 19th January 2019:

PAYE, Student loan and CIS deductions are due for the month to 5th January 2019

This deadline is relevant to employers who have made PAYE deductions from their employees’ salaries and to contractors who have paid subcontractors under the CIS.

Employers are required to make payment to HMRC of the income tax, national insurance and student loan deductions. Contractors are required to make payment to HMRC of the tax deductions made from subcontractors under the CIS.

Where the payment is made electronically the deadline for receipt of cleared payment is 22nd January 2019. In year interest will be charged if payment is made late. Penalties also apply.

PAYE quarterly payments are due for small employers for the pay periods 6th October 2018 to 5th January 2019

This deadline is relevant to small employers and contractors only. As a small employer with income tax, national insurance and student loan deductions of less than £1,500 a month you are required to make payment to HMRC of the income tax, national insurance and student loan deductions on a quarterly basis.

Where the payment is made electronically the deadline for receipt of cleared payment is 22nd January 2019. In year interest will be charged if payment is made late. Penalties also apply.

If you would like to receive email reminders before these key tax dates from our taxREMINDER system, then click here to register on our website. If you have already registered and would like to change your taxREMINDER options then click to log on.

If you would like to discuss any of this further then please get in touch 0116 2423400 or info@torrwaterfield.co.uk

HMRC reminder to employees to claim their tax deductible expenses

HMRC is reminding employees that they may be able to claim a tax rebate on their work related expenses. HMRC estimate that millions of employees, particularly those working in the service industry, could be entitled to a tax refund. Workers, including nurses, hairdressers, construction workers and those working in retail and food sectors, may be able to claim tax rebates.

Individuals in these types of roles sometimes have to pay for work-related expenses including car mileage, replacing or repairing small tools, or maintaining branded uniforms.

Where these types of expenses are incurred, employees may be entitled to claim a tax refund. HMRC is advising individuals to go directly to GOV.UK to check if they can claim extra cash back. HMRC advise taxpayers to log in to their Personal Tax Account to claim their tax relief online and that approved claims should be refunded within three weeks.

Financial Secretary to the Treasury, Mel Stride MP, said:


‘We know what a difference tax relief can make to hard-working customers, especially at this time of year. HMRC is keen to make sure customers get all the relief they’re entitled to, by using the online service.
Tax relief isn’t available for all employment expenses, so the online Check If You Can Claim tool is very helpful – then if your claim is approved, your full tax relief will be paid directly into your bank account.

The majority of claims are for repairing or replacing tools and branded uniforms, professional subscriptions and mileage. Healthcare workers, people working in food and retail, and those in the construction industry are among the top professions to claim from HMRC.

HMRC is advising that taxpayers may be able to claim tax relief on the cost of:

  • repairing or replacing small tools needed to do their job (for example, scissors or an electric drill)
  • cleaning, repairing or replacing specialist clothing (for example, a branded uniform or safety boots)
  • business mileage (not commuting)
  • travel and overnight expenses
  • professional fees and subscriptions.

Contact us if you would like help claiming tax relief on your expenses. https://www.torrwaterfield.co.uk/contact-usInfo@torrwaterfield.co.uk – 0116 24243400