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.



  • JodieR
    JodieR Registered Posts: 1,002 Beyond epic contributor 🧙‍♂️
    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?
  • mc25
    mc25 Registered Posts: 232 Dedicated contributor 🦉

    Jodier, thanks for your reply.
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