Charitable Donations

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

Personal Donations

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.

info@togetherwecount.co.uk

www.togetherwecount.co.uk

https://g.page/Together-We-Count-Limited?gm

01273 569088
0114 400 0119

Comments

More Information- CJRS and SEISS

As we start another week, I felt it was important for me to share the latest updates with you regarding the Coronavirus Job Retention Scheme and the Self-Employed Income Support Scheme. HMRC Recovery Powers HMRC have put together the draft legislative package to reclaim payments under CJRS and the Self-Employed Income Support Scheme. This is subject to a HMRC consultation which comes to an end on 12th June. Under the draft legislation, HMRC will have the power, by way of a 100% tax charge, to recover payments which were either: Not due Not used to pay wages and PAYE Not used to make pension contributions Penalties will be imposed where there has been deliberate non-compliance. This comes at the same time as HMRC have notified that, to date, they have picked up on nearly 2,000 fraudulent CJRS claims to date. This is, in part, due to ongoing calls to their Fraud hotline number 0800 788887 and also through their online whistle-blower report webpage. Big reminder – 10th June last dat...

WARNING - Self Employed Take Note

Who does this affect? Unincorporated businesses (sole-traders, partnerships, and limited liability partnerships) whose accounts year does not end between 31st March and 5th April. What is the present position? For a particular tax year, you are normally taxed on the net profit per the accounts which end in that tax year. Example of the Present Position Tom has been self-employed for several years and draws up accounts to 30th April each year. His accounts to 30th April 2021 show net profit of £30,000. That is taxable in the 2021/22 tax year. What may change? The Government intend that all self-employed will pay tax and national insurance based upon net profit aligned to the tax year itself and not the accounting year end. Do I have to move my accounting date? No, you can retain your present accounting year end if you want. However, if the change comes into effect, for tax purposes, you will need to report your self-employed income and expenditure incurred based upon the tax year a...

TWC Newsletter edited to include further info

After a weekend of devastating news for many, I hope you are all faring up. I know you have all worked hard at making your businesses Covid secure only to be told we must lock down for the next 4 weeks. As a result of this the Job Retention Scheme (JRS), which we all thought was coming to an end on 31st October, has now been extended until at least the beginning of December, at which point a review of the situation will be made then. This impacts upon the whole of the UK. The government have mentioned that there is to be extension to the mortgage payment holiday and have also regurgitated the English grants availability for businesses forced to close due to the Covid-19 regulations, which they originally announced during the weekend of 10th – 11th October 2020. There will be more updates to follow but for now I have the following information for you…… Job Retention Scheme (JRS) Extension The JRS which was due to come to an end on 31st October 2020 has now been extended until at...

Get new posts by email:

Search This Blog