Gift Aid at FIRE
Posted: September 19th, 2017, 9:20 am
After I FIREd last tax year, I carried on Gift Aiding as I thought I'd still be paying enough tax to cover it, but realise that in certain circumstances you can have quite a high income and not pay tax.
With the combination of Personal Allowance, Personal Savings Allowance, Dividend Allowance and Starting Rate for Savings, I think you can have scenarios like
£22.5k income comprised of £5k dividends, £17.5k interest (11.5k PA, 1k PSA, 5k DA 5k SRS)
Which you could get with a £120k index tracker and £200k p2p holding (and balls of steel for all that p2p)
My position isn't that extreme but I've realised I might be only paying £200 tax or so, which could easily be less than the Gift aid on English Heritage, visits to museums etc, so I've been busy cancelling my forms, as I assume the charities only claim after the end of the tax year.
Caveat Donor
With the combination of Personal Allowance, Personal Savings Allowance, Dividend Allowance and Starting Rate for Savings, I think you can have scenarios like
£22.5k income comprised of £5k dividends, £17.5k interest (11.5k PA, 1k PSA, 5k DA 5k SRS)
Which you could get with a £120k index tracker and £200k p2p holding (and balls of steel for all that p2p)
My position isn't that extreme but I've realised I might be only paying £200 tax or so, which could easily be less than the Gift aid on English Heritage, visits to museums etc, so I've been busy cancelling my forms, as I assume the charities only claim after the end of the tax year.
Caveat Donor