Charity Donation

Trampas

If I make a charity donation I understand I can claim some tax back.

Do I have to wait till 2011 to claim it back for a donation made in 2010?

Legend100

are you a paye worker; a sole trader or a company?

Trampas

paye

Beasty

Assuming you have no other income (eg investment income, or taxable income from share option schemes), and the payment was to a tax-exempt charity, it is the charity, rather than you, who can claim the tax back.

You need to provide the charity with a cmpleted form CHY2 Cert to allow them to reclaim the tax

Trampas

Thanks.

The charity is the Irish Cancer society.

Can they claim it back for you so they keep the money?

Legend100

Yes it is the charity that recieves the tax back since you are paye. So if you paid x amount then the charity can claim tax at the marginal rate if you fill out the form as outlied by previous poster

Mr. Incognito

Whoa now.

You don't have to have the charity claim the tax back.

You are entitled to a credit against PAYE for charitable donations to registered Irish charities.

gerrybbadd

Only self employed taxpayers can claim this as a deduction.

As a PAYE taxpayer, you complete a form called a CHY2 Cert, which you then forward onto the Charity you made the donation to.

The charity then sends this form to Revenue to claim. The legislation dealing with this is Section 848A of the Taxes Consolidation Act, 1997.

There are also guidance notes on the CHY2 Cert itself, explaining how the refunds are dealt with.

Ticktactoe

Gerrybbadd is correct.

Only if you are I.T registered, then you can claim tax relief on donations to Charity. If your income is only PAYE, unfortunately you cannot claim any relief however on a brighter note the charity can claim and get the benefit!

Beasty

PAYE employees can get this if they are self-assessed and have other income which is not taxed under PAYE, such as taxable share awards or investment income (above a certain level). It is not, therefore, restricted to the self-employed.

AFAIK, anyone who only has PAYE income cannot get the relief - in this case it is the charity that claims the tax back at the individual's marginal tax rate

@Mr. Incognito - I am not aware of any basis for claiming a PAYE credit, although I am also no expert in Irish tax law. Is there some specific provision you are referring to?

Mr. Incognito

There is no specific credit that I am aware of but I have claimed the credit for PAYE employees in the past when filing Form 11's for cross border workers that had share options so there is a bit of flexibility there.

I haven't had a detailed look at the sections recently but will do so and get back to the thread.

I'm wondering whether a PAYE only worker would be able to claim charitable donations by filing a Form 12. I haven't seen any Revenue guidance on it but I'll have a look.

Beasty

Mr. Incognito wrote: »

There is no specific credit that I am aware of but I have claimed the credit for PAYE employees in the past when filing Form 11's for cross border workers that had share options so there is a bit of flexibility there.

I haven't had a detailed look at the sections recently but will do so and get back to the thread.

I'm wondering whether a PAYE only worker would be able to claim charitable donations by filing a Form 12. I haven't seen any Revenue guidance on it but I'll have a look.

I took specific advice on this (from one of the "Big 4" accounting firms), as I am subject to PAYE but have other taxable income (mainly from share schemes, but also small amounts of interest and dividend income)

I was unable to go down the CHY2 Cert route, as this is available to individuals that only have PAYE income. I was advised to claim the relief on submission of my return

It is a bit of an odd one, as you do not necessarily know when you make the charitable payment whether you will be fully taxed under PAYE, or subject to Self Assessment (I made a payment early in the year, but did not receive the (contingent) share award until much later in the year. Hence I did not know whether I could (or should) provide the CHY2 Cert when I made the payment. I (as it turned out correctly) assumed I would get the shares, but could not guarantee it.

gerrybbadd

Mr. Incognito wrote: »

There is no specific credit that I am aware of but I have claimed the credit for PAYE employees in the past when filing Form 11's for cross border workers that had share options so there is a bit of flexibility there.

I haven't had a detailed look at the sections recently but will do so and get back to the thread.

I'm wondering whether a PAYE only worker would be able to claim charitable donations by filing a Form 12. I haven't seen any Revenue guidance on it but I'll have a look.

I think the charitable donation is given as a deduction (rather than credit) from taxable income for a self assessed taxpayer (could be wrong here:()

PAYE only workers cannot claim this as a credit or deduction at all - there isn't even a section on the Form 12 return for them to do so. The only avenue available is to complete the CHY2 form, and send off tho the charity who recieved the donation.