PAYE10025 - Coding: coding allowances and reliefs: gift aid

From 6 April 2000, all gifts of money by individuals to charity, including Deeds of Covenant, fall within the Gift Aid scheme. There is no longer any lower limit for relief.

Purely for the purposes of computing a person’s entitlement to the age-related personal allowance or the Married Couple’s allowance, a taxpayer’s Adjusted Net Income (ANI) is reduced by the grossed up Gift Aid donations made during the relevant tax year.

Guidance in the Relief Instructions (RE) Manual at RE1830 onwards tells you the conditions and how to calculate the relief.

Enter the amount of Gift Aid payments and the system will calculate the coding relief.

Where an individual has no liability to pay tax, guidance at PAYE11115, PAYE80032 and PAYE130030 should be followed to recover any incorrect basic rate tax relief claimed by the individual.

Where an individual has liability to pay tax at higher rate or additional rate further relief will be due.