Why does it work out at 28* pence for every pound given?
Although basic rate tax is currently 22 per cent, the donation for £1 is treated as the net after tax from £1.28 (£1.28 minus 22 per cent is approximately £1). The organisation get back the 28 pence. *When the basic rate tax changes to 20 per cent, the donation for £1 is treated as the net after tax from £1.25 (£1.25 minus 20 per cent is £1). The organisation get back the 25 pence.
Although basic rate tax is currently 22 per cent, the donation for £1 is treated as the net after tax from £1.28 (£1.28 minus 22 per cent is approximately £1). RNIB get back the 28 pence. *When the basic rate tax changes to 20 per cent, the donation for £1 is treated as the net after tax from £1.25 (£1.25 minus 20 per cent is £1). RNIB get back the 25 pence.
