Claiming tax relief on a charitable donation

223vmax

If I, as a PAYE individual, donate to a registered charity/sports body €1K can I claim back tax I paid on the 1K donation? If so how do I claim that bacK?

wench

You don't get the tax relief, the charity does.

They will usually send you out a form to enable them to claim it back.

https://www.revenue.ie/en/companies-and-charities/charities-and-sports-bodies/charitable-donation-scheme/who-can-claim-the-relief.aspx

callaway92

No - Only the charity can claim back on it I believe.

EG:

In 2014, Alan Allman donates €400 to an eligible charity. • Alan has paid sufficient tax to cover the tax refund due to the charity and the relevant appropriate returns in support of the tax paid have been made. • The value of the donation to the charity is €579 (€400 x 100/69). This comprises the €400 payment by Alan plus the tax associated with the donation of €179 (€579 - €400). • The charity may claim a repayment of €179 from the Revenue Commissioners once it is in receipt of either an enduring or annual certificate from Alan. • The donation costs Alan €400.

223vmax

Donations from individuals

When an individual donates, the approved body claims the tax relief. To allow the approved body to claim the relief you must complete one of the following forms and give it to the organisation:

• Enduring Certificate – CHY3 Cert
• Annual Certificate – CHY4 Cert.

Where you allow the charity to claim the relief, you will not be able to claim a refund of the same tax.

So does the above in bold imply that I could claim back the tax back as long as the charity doesn't claim it back?

wench

No.

Say you only paid 200 tax, and you make a donation that would result in 150 tax relief to the charity.

You could not then make a claim for 100 back from medical expenses.

callaway92

https://www.boards.ie/discussion/comment/118421779#Comment_118421779

Couldn't that be potential for fraud then? Surely can't be allowed.

223vmax

Maybe I'm thinking about it in the wrong way....but my thinking logic says,

So I pay tax on my wages at the higher rate 42%. The €1k that i donate, I've already paid the tax on.

Since I donated 1K, the government then gives back the tax that I initially paid when I received the 1K in salary. So either me or the charity is in a position to claim that tax payment back, but not both of us. So if I sign the form from the charity to enable them to claim back that tax, I am therefore essentially giving up my right to claim it back.

That's the way I assumed it would work.

wench

Correct. But if you don't let them claim it, nobody gets it. You can't get it back directly.

coylemj

I tend to agree with the OP, the wording on the Revenue website is confusing.

Under 'Who can claim the relief', they say..

When an individual donates, the approved body claims the tax relief.

But then....

Where you allow the charity to claim the relief, you will not be able to claim a refund of the same tax.

Which implies that if you do not allow the charity to claim the relief (by not filling out either of the forms mentioned), you can claim the relief.

I think they should remove or rephrase that last sentence because my understanding is that an individual can not claim the relief, regardless of whether the recipient claims it or not.