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Sam, Accountant
Category: Tax
Satisfied Customers: 14153
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I work charity in the UK, and am paid using PAYE. in

Customer Question

I work for a charity in the UK, and am paid using PAYE. in addition, during my annual leave I do some consulting work, on which I pay tax through an annual return. Recently I did some external work for which I want half the income to go to my employer (the charity) and half to myself as taxable income. The company I worked for wants to pay all the money to me in the first instance, and let me pass on half to the charity. That way, they don't have to set up a separate purchase order, etc. My only fear in doing this is that I may be liable for tax on the entire amount. Can I insulate myself against this risk e.g. by clearly stating in my invoice to the company that half of the amount is a donation to the charity which I will pass on to the charity in its entirety? (Thus making it clear in the paperwork that this is not income for me personally, even though it will transit my bank account - albeit briefly). Thanks
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi Thanks for your question You are correct in your thought process, you will be liable to tax on the whole amount you are paid as the money itself arises from work you undertake, so has to be fully considered under the income tax rules. Its irrelevant whether the company whom pay you, detail that half the money is for charity or not, you remin liable to tax on the basis of how the money arose.And you are choosing to donate half to charity - after that event and cannot incorporate that into a before position.On the plus side the charity can claim gift aid back on the payment! Let me know if I can assist further and I am sorry there is no way around this for youThanksSam
Customer: replied 2 years ago.
Thank you,
Expert:  Sam replied 2 years ago.
Hi Phil You are welcome and I am sorry the news was not more favourable If you do not require any further assistance, then please do take the time out to rate me for the level of service I have provided (or click accept) as this ensures that Just Answer credit me for my time Thanks Sam