ADT charitable donations increased & taxed.

Discussion in 'Charities and Welfare' started by The_Cad, Jan 29, 2008.

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  1. Received the following e mail (after my donation had been increased) and thought this one may be up for a discussion or even a campaign to remove the income tax element.

    Now personally speaking the increase doesn't bother me as it is a small price to pay to help our own, what does bother me is that not only does our Government fail to look after our wounded and bereaved, (Some of whome are wounded and bereaved due to treasury under funding) it then taxes the charitable donations of those of us who do actually care.

    Is it just me or does this stink??

    Increase to ADT members' annual subscriptions via salary with effect from 1 Jan 08.


    KEY POINTS

    • As a result of the increased number of operational deaths and therefore grants to Next of Kin (NOK), it is necessary to increase annual subscriptions from £5 to £7(exclusive of basic rate income tax).
    • The new rate will be implemented wef 1 Jan 08 and the first deductions will appear on Jan 08 salary statements.
    • JPA will deduct the subscription under the Payroll Giving Scheme, before income tax (PAYE) has been deducted on the officer's or soldier's salary.
    • Therefore £8.75 (this includes £1.75 of basic rate income tax) will show on pay statements.
    • Officers and soldiers wanting to join ADT after 1 Jan 08, or who's application was in the system and had not been actioned by 31 Dec 07, will join ADT at the new subscription rate.

    BACKGROUND

    1. The Army Dependants' Trust is a charity which aims to provide immediate financial support through a discretionary cash grant, to the dependants or next of kin if a member dies while serving from whatever cause. The Trustees have reviewed the rate of annual subscription, as a result of the increase in operational fatalities and discretionary grant expenditure during 2007.

    2. Current members will pay the new subscription rate from their January salary. New members joining ADT from Jan 08 will pay their first subscription in the month following their application to join and then annually from the following January.

    3. Subscriptions will continue to be collected under the Payroll Giving Scheme. Under this scheme, subscriptions to ADT are made before income tax is deducted from the member's salary and are grossed up by the level of basic rate income tax. This saves the member completing a Gift Aid Declaration form and the Charity claiming the income tax element from the Inland Revenue.

    4. There is no need for existing members, or their Units, to take any action. SPV(A) will amend all future subscription rates.

    5. Letters to the Trustees from NOK have shown that grants have reduced one worry - paying for the funeral and sorting out their relatives affairs - in what is a very difficult time for them.

    6. Additional Questions. Any questions on ADT subscriptions should be directed to:

    The Secretary
    The Army Dependants' Trust
     
  2. No shock there, see link