Budget 2013 has introduced with effect from 1 January 2013 a new regime for tax deductions for donations to charities. Previously there was a distinction between donors who were self employed (who claimed a deduction) and those donors who were subject to PAYE (where the tax relief was repaid to the charity). The relief had been available at the marginal rate.

Now there will be a blended rate of relief applicable to all taxpayers whether employed or self employed and similar to the manner existing PAYE donors had their relief available to the charity, the charity will take the relief.

There will be simplification procedures put in place to enable efficient claims by the charities for the relief, such as the reduction in the need to ask for the PPSN each year and to submit the relief claim for all donors at the same time even though the refunds will not be processed until the P35 (in the case of employees) and the annual income tax return (in the case of the self employed) has been filed.

For more details see here.

For further consideration of the original consultation on this matter see here.


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