Donations to Charity

[PabloV8]

Just looking on-line for information in relation to donations to charities, it quite clearly states on HMRC that you cannot claim donations from profits ie. profits are taxable, once tax is paid then you take the money made towards donations from what is left after taxes!

Okay, so how is that circumnavigated?

I do not mind paying the 10/20% in the pound to charities! but would be happier if this was part of the expenses of running a business! me thinks I thought otherwise!

Anyone got any answers to this?

Cheers

[Mark@YorVend]

Not sure about sole traders, but I know companies can give donations to charities as long as they don't receive anything in return. It can be a grey area but as long as you don't use the association with a charity to benefit yourself or your business in anyway you will be fine, as theoretically a company could 'donate' all it's profits to a charity.

[PabloV8]

Hi Mark,

Thanks for that.

I take it you are a limited company - what did you do when you operated as a sole trader?

Cheers

[PabloV8]

Perhaps I was not clear enough.

As I understand, once you have taken all expenses from takings you pay taxes if any are due.

What is left is profit, all the donations come from your profits therefore, for every 1k of donations is actually £1200 as the profits would already have been taxed.

Or am I reading this incorrectly?

Cheers

[PGBrew]

Treat charity donations as commission. Any 'donation' based on %age is commission and can be treated as an overhead in your accounts.