Charity Donations

Can Charity Donations be processed through a Company?

The good news is that Donations to a charity can be offset against Corporation Tax if the donation is made to a registered charity, you would simply pay the donation from your company account and include it on your next expense submission.

A couple of points to note:

  • No family member must benefit from the charity donated to.
  • There needs to be some sort of proof from the charity of the donation made, which must also include the registered charity number. In order to claim tax efficiency the organisation you are donating to must be recognised as a charity for tax purposes by HMRC (the tax man).

If you are not 100% sure if the charity you are donating to is registered for Tax purposes, you can ask them for their charity registration number – this will usually be noted on their giving page, or at the bottom of their website.

Your charity can also claim back tax, if you claim your donation is under the ‘Gift Aid’ scheme when donating and you personally can claim tax relief on your donation to the charity of your choice by noting it on your Personal Tax Return (self assessment) for the year concerned.

There is also relief for Higher Rate Tax Payers in the UK, when you claim Gift Aid, and in some cases you can claim tax back from HMRC on your donation.

You will need to keep back up that this charitable donation was made. Most giving pages provide you with an email confirmation once the funds have been received, so this should be easily done. Remember to keep a copy of this.

If you require any further information please refer to the Factsheet on your Client Portal or contact us today.

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