This is about me, but it will effect a number of people I know.

I belong to a local church, they are registered charity and i tithe/gift aid to the Church 10% of my income. I have signed a Gift Aid form for the church that allows them to recover the tax paid on any of my donations that I have paid tax on.

My question is - can I deduct the total amount of money that I give to the church, from the the gross income that i have to inform IR when they calculate my tax credits.

The reason I ask is, I myself have queried this and was told I could deduct the amount of money, but a friend of mine who goes to the same church, when asking the same question, was told no. So before I check again I thought I was ask the forum if anyone else knows!

Fri 24-Jun-05 01:11 PM by ken

Extract from previous rightsnet news story -

Gift aid and tax credits: Inland Revenue barriers to increasing entitlement (28 January, 2005)

'Claimants can deduct their gross gift aided donations when working out their income for tax credit purposes, so that their entitlement is based upon their income net of their gifts. However, there is nowhere on the tax credit claim form TC600 where they can easily record any such donation. The accompanying notes advise the claimant to deduct gross payments under gift aid when working out income, and if you have made such donations to phone the helpline. But some who have enquired of the helpline have been told that there is no gift aid relief. In addition, the gift aid publicity item on the home page of the Revenue's website makes no mention of tax credits.

The Low Incomes Tax Reform Group therefore advises tax credit claimants who are taxpayers and have made donations under gift aid -

• when reporting their income on the claim form, to deduct the gross amount of their gift aid donations as directed on page 30 of the notes accompanying form TC600;
  
• if they do phone the helpline, not to be put off if they are told that they cannot claim relief for gift aid.'