Martin Lewis issues tax warning to people who've clicked 'yes' in common box

The BBC Sounds podcast host and presenter spoke out on X, formerly Twitter, in an update for people who make charitable donations in the UK.

Martin Lewis has issued a "tax" warning to people who've clicked 'yes' in a Gift Aid box this year. The BBC Sounds podcast host and presenter spoke out on X, formerly Twitter, in an update for people who make charitable donations in the UK.

Mr Lewis said: "Just worth noting you can only claim gift aid tax back up to the amount of tax you've paid. For most taxpayers this isn't an issue as most only donate a fraction. Yet if you're only just above the amount where you pay (income or capital gains) tax, it's worth bearing in mind."

In January of this year, the Charities Aid Foundation (CAF) claimed British charitable organisations were collectively missing out on £560 million a year, as only 55 percent of people were opting into Gift Aid. Mr Lewis said: "If you donate to a charity, say 'yes' to Gift Aid.

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"Because that way the charity gets more and you may get more too." Mr Lewis told his followers: "So the simple rule is when you donate (if you're a UK taxpayer, that's crucial) just say 'yes indeedy' to Gift Aid. It is that simple."

"So when you're paid, the tax office comes along and takes 20 percent of it away. So if you earned £25, you take home £20," he said. "But Gift Aid means, when you donate that £20 to charity the charity gets your money and the tax that you pay back", he explained.

"Which works out as a gain of 25 per cent on top [but it] doesn't cost you anything but on each £20 it gets a fiver more. So say 'yes' to Gift Aid and the £20 becomes £25," Mr Lewis said. The 52-year-old went on: "And there's more. If you're a higher 40 per cent rate taxpayer.

"For every £100 you earn, you take home £60, the tax office gets £40. If you donate to charity, the charity still gets the 25 per cent boost. So the charity is getting more and you can claim the remainder of the tax that you paid, back.

"You generally do this via your self-assessment form."