Question For An Elderly Friend

[viv41]

She donates monthly to a favourite charity, which is gift aided, but now she is no longer paying tax on her pension due to the personal allowance rising. She has savings, but doesn't know if she pays tax on them or not. My question for her is, is she still a UK taxpayer (due to her savings) so she can carry on gift aiding ?

[viv41]

I have to go now, but will check in later for hopefully some answers. Thanks in advance.

[bhg481]

Bearing in mind that the first £1000 interest on savings is now tax free, unless she has a large savings pot she won't be paying tax on the interest.

[hc4361]

As we all get the £1000 of interest on savings tax free she will have to roughly £74000 of savings to pay tax. If she has less than this she is not a tax payer and cannot gift aid.

[EDDIE51]

She can still donate but the charity will not be able to reclaim the tax.

[woofgang]

I actually checked this out....if you gift aid without paying sufficient tax, HMRC CAN bill you for the difference.....not saying they do or will but they can.

[viv41]

Thanks all for your very helpful answers. Blimey woof, I never knew that! My friend will be disappointed she can now no longer gift aid, but at least she can still donate. Thanks again.