When it comes to your business or personal savings, it can be hugely beneficial to look at options available to reduce your taxable income. There are many legal ways you could go about this, with different solutions offering pros and cons for your business. Fortunately, our team here at Wealth Safe is on hand to help you learn more about how to save money on your taxes. And today, we’ll be looking at how donating to charity can benefit the amount of taxes you need to pay!

How Donating to Charity Can Save on Taxes!

Did you know that donating to charity can be an excellent way for your business to save money on taxes? Indeed, there are many reasons why you might want to donate to a cause that you believe in. However, a benefit that you may have considered is that your donation will help alleviate some of the tax you need to pay.

Montage Wealth Management explains this well in the following quote:

“If you are a higher rate taxpayer, you can claim tax relief of up to 20% on charitable donations made using Gift Aid; additional rate taxpayers can reclaim up to 25%... Gift Aid allows the charity to reclaim the basic rate tax (20%); the individual can reclaim the other 20% or 25% to reduce their tax bill for that year. Claims will typically be for the tax year of the donation, but if you did not earn sufficient to benefit from the relief in the current tax year, it is possible to reclaim income tax from the previous tax year.”

As such, if you have been looking to save money on your taxes, you can use charitable donations as a benefit. So, the next time you’ve been thinking about supporting a cause, don’t forget that there could be some tax savings in it for you, too!

Get Further Tax Advice From Our Team Today!

If you have been considering ways to reduce your overall taxable income but want to make sure you’re staying on the right side of the law, we here at Wealth Safe can help. We have over thirty years of experience in the taxation industry, ten years of which were spent working for the Australian Taxation Office itself. So, it’s fair to say that we know all there is to know about the tax structure in Australia and how to save money on your taxes.

That’s why, today, we’re here to give you some ideas about how to save on your taxes too. So, don’t compromise. Find the best tax advice for your personal savings or business taxes with help from our team today!