Client is considering making a sizable charitable payment under Gift Aid payment

Charitable giving doesn’t just feel good, it has direct tax benefits.

But many clients don’t realise that a Gift Aid donation can reduce their tax bill and extend their basic rate band, especially if they’re near a threshold.

This scenario walks through a client with a standard salary/dividend setup who now wants to donate £1,000 to charity.

With Tax Torch, you can show exactly what that does to their tax calculation: how the basic rate band is extended, how higher-rate liability is reduced, and how their donation benefits both the charity and themselves.

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• Input salary (e.g. £40,000) and dividends (e.g. £37,700)
  
• Add a £1,000 Gift Aid donation
  
• View how the basic rate band is extended by £1,250
  
• Compare the before-and-after tax calculation
• Show the client how this affects their final tax due and take-home

• When clients mention donations under Gift Aid
  
• When planning year-end tax and charitable giving
• To highlight extra ways to reduce tax near the higher-rate threshold