Tax & charity donations

chessguy

Hi I was wondering if i make donations to charity,
are they fully tax deductable ?

for example if I pay 500 a month in tax ,
and decide to donate the same amount to a charity,
could the total amount 500 be claimed back from tax,monthly retrospectively.So 6000 a year ?

so it would equate to no tax paid at all and the whole amount donated.to charity.

Also what amount can be paid and claimed back in tax to a registered charity annually, for example to Concern.ie /or Trocaire is there a upper limit on the amount that can be claimed back.


regards
chessguy

Alan Shore

Donations of more than €250 to a registered charity qualify for relief. The charity has to be registered for more than 2 years.

There is different treatment for PAYE taxpayers and self employed tax payers.
A donation by a PAYE taxpayer is regrossed and the Charity makes the claim from the Revenue. So if someone donates €590 to a charity the charity reclaims €410 from Revenue.
A donation by a self employed person is deducted from their taxable income. So a donation of €1000 will reduce their tax bill by €410.
The restriction on high earners applied to Charity Donations. They can only claim annually the greater of €80,000 or 20% of their total income, so to be greater than €80,000 they would have to have total income greater than €400,000.

Hope that helps.

chessguy

Thanks for the info, some of it is a little cloudy.

I am a PAYE taxpayer,


could you put the above in to laymans terms ,

Mr. Incognito

go to www.revenue.ie

put charity in the search box

third hit is a handbook explaining it all.

Alan Shore

I thought I was using laymans language.

Alan Shore wrote: »

A donation by a PAYE taxpayer is regrossed and the Charity makes the claim from the Revenue. So if someone donates €590 to a charity the charity reclaims €410 from Revenue.

So if you as a PAYE taxpayer make a donation of €590 as a higher rate taxpayer then the charity can make a claim from the Revenue for €410.

You do not get any refund of tax yourself.

chessguy

Alan Shore wrote: »

I thought I was using laymans language.

Guess I must be missing something obvious..

So if you as a PAYE taxpayer make a donation of €590 as a higher rate taxpayer then the charity can make a claim from the Revenue for €410.

You do not get any refund of tax yourself.

so to clarify i make a donation of say 590 , and the charity can make a claim for 410,

what does it mean the charity can make a claim,?

I presumed one could pay say 500 monthly per annum , keep all the receipts and at the end of the year show them ,and claim the 6000 back which has already been paid ..as I expect the full amount is tax deductible.
Is this not so.

regards
chessguy

shuyin1

Re: above Charity donations for employees are not tax deductable but self employed individuals with donations >250 are allowed.

huskerdu

chessguy wrote: »

so to clarify i make a donation of say 590 , and the charity can make a claim for 410,

what does it mean the charity can make a claim,?

I presumed one could pay say 500 monthly per annum , keep all the receipts and at the end of the year show them ,and claim the 6000 back which has already been paid ..as I expect the full amount is tax deductible.
Is this not so.

regards
chessguy

No, if you are a PAYE worker, you do not get any tax credit / relief for making a donation to charity.

But, the charity can claim your tax back.

Here is an example.

You get paid a bonus of €500 gross.
You pay tax of 41%, so you pay €205 tax and you get €295. ( ignoring PRSI / USC to make it simpler in this example)
You give this €295 to charity.
You fill out the CHY2 form and send it to the charity.
The charity submit the CHY2 form to revenue and get the €205 tax that you paid sent to them.