Knew it was too good to be true.
My understanding all along was that if you make a donation to an approved chartity by the government, you'll get 2.5X the amount you donated as a tax relief.
What I failed to understand was that the amount reduces your taxable income and it isn't a direct deduction of the tax amount paid.
So unless one makes a huge donation, it's not going to get you to fall into the lower tax bracket and a donation relief of about 250 will result in a tax payable of 10 less.
My understanding all along was that if you make a donation to an approved chartity by the government, you'll get 2.5X the amount you donated as a tax relief.
What I failed to understand was that the amount reduces your taxable income and it isn't a direct deduction of the tax amount paid.
So unless one makes a huge donation, it's not going to get you to fall into the lower tax bracket and a donation relief of about 250 will result in a tax payable of 10 less.