tax & wills

Tax Tables - Tax Deductible - Tax Deductions - Deductions That Can Be Taken Off Your Taxable Income

Gifts To Charity

You can make donations to charities (and receive tax relief on the payments) in the following ways:

• Under 'Give As You Earn'. This means that your employer deducts the amount you wish to give under a payroll deduction scheme. There is no maximum limit that you can give.
• By Gift Aid Donation. Whether you give cash or shares, they will qualify for tax relief. There is no minimum limit.
• By Deed Of Covenant. This will qualify for tax relief if it is able to run for at least four years.

Pension Contributions and Pension Tax Relief

Contributions up to this year's Annual Contribution Allowance are normally allowable but for higher earners this may not be the case:  See New Pension Tax Relief Rules.

Personal Contributions - You can make pension contributions up to certain limits and qualify for tax relief on your payments. The contribution limits are based on the lower of your salary and the Annual Allowance figure set by Government each year. 

You can make excess contributions but these will not attract tax relief and conributions in excess of the annual allowance will attract tax penalties.

Employer Contributions - Employers can make contributions up to the Annual Allowance figure with no check towards an employees salary and claim tax relief.  Contributions in excess of the employee's salary may have tax relief withdrawn if deemed excessive by HM Revenue and Customs.  

An employer can make excess contributions over the annual allowance but these may attract tax penalties for the employee as well as no tax relief for the employer.  For large contributions, tax relief may be spread over a number of years.