Charatible giving sponsorship, tax deductable?

[ItRYmyBEst]

I have a limited company and have this situation. A charity has asked me to donate funds to buy a generator for some poor people in Asia. If I give this funds can I take it off my profits so that I will not be taxed for this? In this case the charity would own the generator. I think I also have to have some business benefit for this to be completely tax deductible so I was thinking of adding a company logo to the item for sponsorship purposes.

What are you thoughts on this matter?

If the above is 100% tax deductible would it remain so if I were to remain the owner of the sponsored generator?

[Scruff]

Are you Tulip in English?

[SueEllen]

So you want to buy a generator for some of your relations in Asia? - Pay for it out of your own pocket. Trying to pass it through the business gives us all a bad name.

If the "charity is actually a registered in a region of the UK - Pay for it out of your own pocket. Why? The charity can claim gift aid for individual donations so they make more money. They can't do this with business donations.

[northernladuk]

What are you thoughts on this matter?

Sounds utterly ridiculous to me.

[stek]

I have a limited company and have this situation. A charity has asked me to donate funds to buy a generator for some poor people in Asia. If I give this funds can I take it off my profits so that I will not be taxed for this? In this case the charity would own the generator. I think I also have to have some business benefit for this to be completely tax deductible so I was thinking of adding a company logo to the item for sponsorship purposes.

What are you thoughts on this matter?

If the above is 100% tax deductible would it remain so if I were to remain the owner of the sponsored generator?

Fuk 'em - 90% will go towards the Directors' Mercs, etc, same with any beggars, cross the road, there's jobs - my Ferrari needs a clean, there's 20p for one there.

[stek]

If the above is 100% tax deductible would it remain so if I were to remain the owner of the sponsored generator?

Can you sponsor my 80" OLED curved screen telly?

I'll stick your name on it no prob.

[mudskipper]

My understanding is that you can make a donation to a registered charity from yourCo, as long as there is no benefit to you.

If it's a genuine charitable donation to a registered charity, there should not be an issue, but probably more straightforward to donate the money and let them buy the generator.

If you/yourCo owns the generator, it's hard to see how it's a charitable donation.

[TheFaQQer]

If the "charity is actually a registered in a region of the UK - Pay for it out of your own pocket. Why? The charity can claim gift aid for individual donations so they make more money. They can't do this with business donations.

It depends on the primary aim of the donation. If it's to maximise the money for the charity, then you are better off doing it as a personal donation so they can claim the tax back (presuming you are a UK tax payer); if not, then you may be better off making the payment from the company and reducing your company tax bill instead.

[Chris at CrunchAccounting]

Charitable donations

Yes, you can make charitable donation from Ltd company. These donations will be made gross and are deducible from the total profits of the business, to the point you have no more profits. It is important to note the the charity can't claim any gift aid on the donation. The charity must be established for 'charitable purposes' only and is a registered charity.

For donations to qualify any benefits provided to your company or a 'connected' person in connection with the donation must be below certain amounts depending on the amount of the donation.

Alternatively you can make a personal charitable donation, which 20% tax relief is achieved at source (Gift aid) and any further amounts will be claimed on your self assessment (If higher/additional tax payer).

[ItRYmyBEst]

My understanding is that you can make a donation to a registered charity from yourCo, as long as there is no benefit to you.

If it's a genuine charitable donation to a registered charity, there should not be an issue, but probably more straightforward to donate the money and let them buy the generator.

If you/yourCo owns the generator, it's hard to see how it's a charitable donation.

Its ok if I dont own the generator, but I do want my logo on it

So you want to buy a generator for some of your relations in Asia? - Pay for it out of your own pocket. Trying to pass it through the business gives us all a bad name.

not my relations, some hard situation they are in and I just want to help.

Can you sponsor my 80" OLED curved screen telly?

I'll stick your name on it no prob.

where will the tv be

Yes, you can make charitable donation from Ltd company. These donations will be made gross and are deducible from the total profits of the business, to the point you have no more profits. It is important to note the the charity can't claim any gift aid on the donation. The charity must be established for 'charitable purposes' only and is a registered charity.

For donations to qualify any benefits provided to your company or a 'connected' person in connection with the donation must be below certain amounts depending on the amount of the donation.

I'm connected in that I help them a lot out of my pocket, but I don't receive any financial benefits from them. I've been donating to the charity over the years but now I have my company it seems simpler to donate to them before corporation tax.