Yet another Business Tax Question

A-VicA-Vic Expertise GuaranteedRegistered Posts: 6,970
Hi another for you

Under allowable and disalloweble expenses! A clothing shop

I have £100 donation to a national charity and £40 to a local charitys fete, the fetes programme carried a free advertisement for the shop.

Would the fete's donation be alloweble as it carries advertising but the national charity not?


Thanks in advance


Vic

Comments

  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    I believe you need to look at the national and local bit.

    When I was studying I was taught that national charities are not allowable but local ones are.

    Having said that I can't find anything to back that up so if anyone knows any different and I've missed a change then please let me know.

    Obviously if gift aid is involved it is a different set of rules but I presume you are dealing with adjustments to trading profits?
  • A-VicA-Vic Expertise Guaranteed Registered Posts: 6,970
    I believe you need to look at the national and local bit.

    When I was studying I was taught that national charities are not allowable but local ones are.

    Having said that I can't find anything to back that up so if anyone knows any different and I've missed a change then please let me know.

    Obviously if gift aid is involved it is a different set of rules but I presume you are dealing with adjustments to trading profits?

    Thanks for getting back to me :)

    Yes it is the adjustments to trading i presumed that because the local chairty would be of a beneifit to the trader i allowed it but the national never mentioned any benifit i dis-allowed it
  • lisniclisnic Well-Known Registered Posts: 141
    local would be allowable as it generates local goodwill

    national charity donation is disallowable

    logos etc applies to gifts to customers which needs to be under 50 per customer and have logo and cannot be food or alcohol

    hth
  • A-VicA-Vic Expertise Guaranteed Registered Posts: 6,970
    Thanks L

    We went through the question and i was right :) woohoo now to learn everything else lol
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