Do you have a charity close to your heart? Most people do. Perhaps they have supported you personally or maybe they support a cause you feel strongly about. Whether you run marathons, bake cakes, dress up in silly outfits or shave your head for your worthy causes, did you know that if you make a donation through your company, you can reduce the amount of Corporation Tax you pay as a charitable donation can be claimed as an expense.
This is good news on multiple levels.
Not only can you reduce your tax bill (which no one has ever complained about!), but you can also get your whole team involved which could ultimately lead to more money for your chosen charity. There are so many ways your company can incorporate donations into their normal working day.
- Donate for every customer satisfaction survey completed
- Donate for every new client you bring on board
- There are even companies that donate 1p for every email sent
- Charity Christmas balls for the staff
- Donate a product or service to the local raffle
- Sponsor a local sports team
Get creative with your fundraising ideas!
For the claim for charitable donations to be eligible for tax relief, the following criteria need to be met:
- Your company must be making a profit
- If you receive something in return, such as a ticket it must be below a certain amount you have donated
If you are a higher taxpayer, or your donation exceeds your company’s profit then a personal donation might be a better option for you.
Personal Gift Aid donations are worked out using the net rate of tax rather than gross. Your chosen charity can then reclaim that amount from HMRC.
If you would like to discuss this information any further, please don’t hesitate to contact us.
0114 400 0119