New Client with Regular Charity Payments

T.C.

I am taking on a new client who is selling music CDs. For every CD she sells, she will be donating at least £1 to a charity. Anyone know if there is anything particular I should be thinking about with this?

Monsoon

I can't see how this is anything other than a normal charity donation from an individual person (assuming sole trader business). Unless she's getting advertising from making the donation, she will pay the £1 from taxed profits. If she's a higher rate taxpayer she can claim gift aid extension of BR band. That's about it I think.

T.C.

She is a sole trader. She is advertising on the CD cases that "at least £10 will go to xx charity". Do you think anything else applies here?

Monsoon

I had a similar one a few years ago. I don't think charitable donations are allowable unless you're getting advertising from them in return.

Wait. I've just looked up my emails from that client. Local or national charity? Local charity donations are allowable.

T.C.

A couple of national cancer charities and a couple of local ones.

Monsoon

Local ones are a tax deductible expense. National ones aren't.

I would love to know if there is a way to make them all tax deductible, but I don't know of any, unless you can somehow argue advertising.

T.C.

Thanks for that. I will research further and come back if I get any more information.

JodieR

I think it's only allowable if the charity is local and the donation is 'small' and by that a value of £50 is in my head, but this may be wrong/out of date. a bit vague i'm afraid but hopefully it's a lead for you.