Company makes (say) £500 donation to registered charity. payment from bank, where does the other side of the double entry go? I did think it was a normal expenses but reading up I thin it should be claimed as a tax allowance in the corporation tax computation, not as a normal business expense.
On taxfiler there is an entry on the trial balance in the administrative section called Donations, but then that is included in the normal expenses and reduces the profit.
Moving onto doing the CT computation on Taxfilerwhere does this £500 go? I had a look back at last years computation I did on VT accounts and there is an entry there specifically called Registered Charitable Donations, but I don't use it now (as an aside I'm not liking taxfiler at all for doing the accounts so will go back to VT when my next ones due)
-- Edited by Leger on Wednesday 30th of November 2016 03:54:11 PM
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
I don't see why it shouldn't be a normal business expense - I always treat donations as such; it is the business making the donation, in the business name, etc.
I post them to a nominal account in the same sort of region as sundries, because it's a miscellaneous item that doesn't happen often.
The only slight issue is when a silly director makes a donation and ticks the gift aid box and needs to be told off. Then it's off to the DLA with the payment!
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
I'm in agreement and that's what I did last year. I can't find any definitive instructions to do it another way so I'll do the same again. The CT is the same either way.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
I've just been going back through my AAT business tax text book (looking for information on something else) and remembered seeing this. The book is from 2013 so not sure if the legislation has changed but it says that donations to charities usually fail the wholly and exclusively test. However small donations to local charities are allowable as they can effectively be classed as advertising. Other charitable donations are disallowed in the adjusted trading profit, unless there is some clear benefit to the trade. However, they are allowable for CT purposes so deducted separately in the tax computation as 'qualifying charitable donations' (going in box 35 - charges paid in the old CT600, don't know off the top of my head where that would be in Version 3.). I don't use though Taxfiler so I can't comment on where to put it.
Thanks Christina. As far as I know, that information is still correct, and I gleaned from googling that it went in box 35, I just couldn't see on Taxfiler how to get it there!
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
I've recently moved house so i've had that to contend with, grrr.
Together with being continuously spooked with all the chatter of automation.
All the magazines, (AAT, CIMA FM, PQ) seem to be well in favour of it.
I'm hoping it will be a major failure - I shouldn't say that, but...
To me, and this is only my opinion - Accountants and bookkeepers have not helped by getting the software out there. Surely it is similar to, but not the same as, web developers selling templates to sites that sell them on to Joe public.
I'm being selfish in my opinions, yet - I'm certainly not KPMG.
Rant over :)
Hope everyone is well.
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
