Bohemia Village Voice

From Mrs Jo Hunter, St Peter’s Road, Bohemia, 24 September 2012.

Here’s a feel-good idea – an idea for all good men and women to come to the aid of the old country in its hour of need – and feel good about it: voluntary tax donations. How would that work then? Everyone who pays tax to the Inland Revenue would have the option to add a voluntary tax donation to their tax payment – a bit like the voluntary tip one adds to a restaurant bill. For example, if your annual tax bill is £781, you could round it up to £800, (tax due: £781. voluntary tax donation:  £19, total payment: £800). Each voluntary tax donation would be made entirely without condition and would not be seen as a pre-payment of future tax due. Especially it would not be an implied admission that one’s tax assessment had been underestimated. All that’s needed is one extra little box on every tax return. Obviously, not everyone would be happy to pay even more tax than they already do. But some people might, and every pound helps.

From Amber Rudd, MP for Hastings & Rye, 12 October 2012:

Let me assure Mrs Hunter that the Government is firmly committed to encouraging philanthropy. While I am not aware of any proposals for the specific scheme she mentions, it is important to remember the significant package of reforms this Government has already introduced to encourage voluntary donations more generally

The Government’s Giving White Paper sets out the plan to encourage more people to get involved in their communities and help create the change they want to see. It will be easier than ever for people to make charitable donations as burdensome red tape is removed and innovative new approaches are launched as part of the strategy.

Other measures include raising the Gift Aid benefit limit from £500 to £2,500 and introducing a Gift Aid Small Donations Scheme, meaning charities can claim a Gift Aid-style payment when collecting small donations. Furthermore, the Government has made a committment that anyone giving more than 10% of their estate to charity will have their inheritance tax bill cut by 10%.

I understand it is possible for people to make voluntary financial donations to the Exchequer and I would encourage individuals to contact HM Revenue & Customs if they wish to get more information on this.

From Daniel Wood, HM Treasury, 24 October 2012, on behalf of George Osbourne, Chancellor of the Exchequer

Thank you for your letter dated 24 September about voluntary tax donations. As it is not practical for Ministers to respond to all the letters they receive, I have been asked to reply on their behalf. Ministers are always keen to receive feedback from people up and down the country, so it is very good of you to take the time to write and to let them have your views. Please rest assured that the contents of your letter have been registered by the Treasury.