Would I be correct in saying that a donation to a charity with its base in say Africa is NOT a qualifying charitable donation?
Plus out of interest and as I was pondering the above - where would the donation go if it was a qualifying donation to a UK charity ( I can see it in sage, but cant in VT trans +.) Anyone seen it in taxfiler? (Not looked yet, just thought I would throw it in whilst Im a pondering!!)
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
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incorporated or personal contribution? Is there any connection between the charity and the contributor?
The way that I've seen these things shown in company accounts most often is as an expense although personally I think that that donations should be shown after the line not before it as burying donations in amongst other expenses confuses them as legitimate company expenditure (I'm very much in the Milton Friedman school of thinking).
Things get clouded over what is allowable and what its not. For starters, giving to a charity a company gives up its right to claim losses from that period to carry forwards. Donations only being available from profit and profit cannot be changed into a loss by charitable giving.
Really we would need more specifics on the charity concerned. i.e. is it a UK Charity that gives aid in Africa or an international Charity? The rule is that for tax relief to be available to charity must be based in UK, EU, Iceland, Liechtenstein or Norway. That does not exclude all benefits ending up in Africa but if it is an African charity rather than a UK one that sends aid to Africa as part of its operations then tax relief would be unlikely to be available.
Have a look at HMRC's list of recognised charities to see if it appears on thewir list.... hang on a sec.... See here for a good start point :
https://www.gov.uk/find-charity-information
HTH,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I did a bit more digging since posting and found the Charity on the charities commission beta site, so its reg in UK. One hurdle sorted.
No connection between charity & contributor.
Director knows volunteer who went out to Africa so cash contrib via Just Giving from Limited company, but that effectively helped 'sponsor' the flight of person going from what I can gather. Also purchased a number of toys from Amazon which were sent out there with the volunteer for the use by orphaned children via the Charity.
Amount not much and is happy to DLA it.
Happy New Year (just a tad early!)
Edited to correct dodgy typing!
-- Edited by Cheshire on Saturday 30th of December 2017 02:25:44 PM
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
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There's nothing in VT and I just created a donations heading in the P+L
In Taxfiler there is an equivalent heading in the P+L called Donations and then (I think) you have to disallow it in the computations. But then where you stick it is a mystery because this is where I got stuck when doing my client's CT600. I did pose a a question on aweb at the time regarding where it should go and (from memory) got the advice to just leave it in the P+L, which reading the manual above, is wrong. The end result is the same though, which I'm sure is what they said.
Just had a look on aweb but can't find it now, so I'll have a proper search tomorrow.
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John
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Hi John
Glad you enjoyed yourself - seems like so long ago already!
For the tax comp you would strip it out (like entertainment), but in this case you add it back via a separate line in the CT600. Box 35 I think - not got it open just now.
Thanks but seriously dont spend any time on it, was just pondering, kind of out loud, so to speak.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
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Leger wrote:In Taxfiler there is an equivalent heading in the P+L called Donations and then (I think) you have to disallow it in the computations. But then where you stick it is a mystery because this is where I got stuck when doing my client's CT600. I did pose a a question on aweb at the time regarding where it should go and (from memory) got the advice to just leave it in the P+L, which reading the manual above, is wrong. The end result is the same though, which I'm sure is what they said.
Hi John,
it's one of those areas where it is very different for a limited company as opposed to the self employed.
Limited companies would put it through thee P&L as an expense (assuming that the charity makes HMRC's list of allowable charities).
The self employed would take it personally through self assessment under gift aid.
HTH,
Shaun.
p.s. Happy new year matey
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Happy new year to you as well matey (and Joanne, Doug, Vince etc etc etc)
Yes, I was aware of the different mechanisms, and in the Ltd accounts it is indeed a PL expense.
Is it then stripped out of the PL on the CT600 though, then added back in under box 350? I'm not sure taxfiler will let you do that, and I just left it in the PL on the CT600. Same effect, but technically incorrect.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
For the tax comp you would strip it out (like entertainment), but in this case you add it back via a separate line in the CT600. Box 35 I think - not got it open just now.
And that's where I got stuck! It's box 350, but how you get it to appear there in Taxfiler I haven't a scoobie.
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John
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Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Cheshire wrote:(I dont want my last post of the year to be to some, recently regularly ungrateful bod....)
Whose upsettin ya bab... (I'm working in Brum at the min and learning their language )
Plenty of opportunity yet to choose your last post of 2017... Make it a good one... I want to hear the distant pop of some newbies head exploding.... No, put the sniper rifle down. I meant due to the complexity of some accounting revelation, not litterally... Pop!
Laters.
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Whose upsettin ya bab... (I'm working in Brum at the min and learning their language really! pls not the accent as well! )
Plenty of opportunity yet to choose your last post of 2017... Make it a good one... I want to hear the distant pop of some newbies head exploding.... No, put the sniper rifle down. I meant due to the complexity of some accounting revelation, not litterally... Pop!
Laters.
Shaun.
Not even a newbie. A v long standing member who does know how to use those two little words, but cannot seem to utter them in response to a certain person who has answered a fair few of their posts of late! Ignorant ****s
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
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Hi John
In taxfiler once you have done the usual computation (including disallowing the donation) then click on the actual CT600 green and white form. Click through the pages until you get to the box 305 for qualifying dons - click on the form and it will ask you if you want to open a section for the donations to be added back in. Click yes and it will take you to one of the standard taxfiler entry boxes. Complete and bobs your uncle - job done.
HTH
HNY
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Oh wow, didn't know you could actually click into the CT600. Thank you so much. I've got one more return to do for this guy at some stage over the next few months so that's great.
Happy new year to you as well. I'm suffering a cricked neck at the moment so taking it steady tonight.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
The company I work for has recently made a donation to a local secondary school so not a registered charity but it is a donation as such. Its the catchment school of the area where the MD lives (& my son goes there, its him that canvassed the donation). I'm guessing there isn't tax relief on this however as a thank you the school are putting the company name and logo in the programme (the sponsorship was towards the costs of the school play) so could it be put down as advertising?
The company I work for has recently made a donation to a local secondary school so not a registered charity but it is a donation as such. Its the catchment school of the area where the MD lives (& my son goes there, its him that canvassed the donation). I'm guessing there isn't tax relief on this however as a thank you the school are putting the company name and logo in the programme (the sponsorship was towards the costs of the school play) so could it be put down as advertising?
Perhaps pop it into an account of its own in your software with eg 'needs reviewing by Accountant' in the account name and let them look at so they can consider the facts in your particular company's case as I dont think we know enough about the business.
Or - start here, but check out the latest cases as this is from 2013! https://www.taxation.co.uk/Articles/2013/02/06/53371/sponsor-me
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
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