small donations
mc25
Registered Posts: 232 Dedicated contributor 🦉
Hi all, Just a quick question really, a client was asking me about little donations given to charity, they run a shop and sometimes they have people calling in at the shop and they sometime give out donations could be £2 or £5 etc... , I am assuming obviously no receipts. how can i account for this in their account. They want to know if they can claim this back.
Any replies will be appreciated.
Thanks
Any replies will be appreciated.
Thanks
0
Comments
-
If it's a sole trader then the donations can usually be declared as gift aid and if they're higher rate tax payers their basic rate tax band will be extended by the gross amount of the gift(s) which will reduce their tax liability accordingly.
I think that there's a rule/consession that if it's a small donation (under £50?) and it's to a local charity that it can just be included as an allowable expense in the accounts. Can anyone clarify that this is still the case?0 -
thanks
Jodier, thanks for your reply.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 156 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 92 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 274 Tax
- 136 Bookkeeping
- 7.2K General accounting discussion
- 201 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership