9:21 At first I don't see a benefit of not paying tax on the portion of allowable deductions. Say if I'm giving away £500, I've 'lost' it so it doesn't matter to me if it's taxed or not. However, in the grand scheme of things, if earnings were bordering on say 40% tax, could say charity giving be made to reduce the taxable pay to below the 40% threshold? And therefore only 20% tax would be paid? Or even pay more into a pension that can be taxed later to keep me under the 40% threshold - I can now see the benefit to that.
By the way, thank you for your videos!!
9:21 At first I don't see a benefit of not paying tax on the portion of allowable deductions. Say if I'm giving away £500, I've 'lost' it so it doesn't matter to me if it's taxed or not. However, in the grand scheme of things, if earnings were bordering on say 40% tax, could say charity giving be made to reduce the taxable pay to below the 40% threshold? And therefore only 20% tax would be paid? Or even pay more into a pension that can be taxed later to keep me under the 40% threshold - I can now see the benefit to that.