Giving to a crowd-funded community business project

[d000hg]

Cheers guys. I ended up just doing it personally to save any hassle. It's not like I'm giving thousands where investigating thoroughly could be worth the hassle.

[northernladuk]

you must have some interesting sports in the islands!

armageddon!!!

[Jessica@WhiteFieldTax]

You must have some interesting sports in the Islands!

Its the dark nights and inbreeding.

[Darren at Fox-Bartfield]

gerbil racing fails

You must have some interesting sports in the Islands!

[Jessica@WhiteFieldTax]

Although there is no specific Corporation Tax relief for giving to a non charity, its still potentially deductible on first principles, i.e. is it "wholly and exclusively" for the companies business.

To note here, the difference between employment expenses, which have to meet a "wholly, exclusively and necessary".

In practical terms then, unless its for a personal purpose (which is where most sponsoring yachts/greyhounds/gerbil racing fails), or is cap ex, or otherwise specifically blocked, then it ought to be deductible.

Pragmatically the amount is of relevance, a small amount relative to turnover is less likely to be challenged during enquiry, a larger amount might be.

The reality is most businesses get asked to put in a hundred pounds to good causes here and there, no necessary registered charities, and most will simply expense it and deduct it. Other than where there is a distinct personal nexus (gift to the local sports club which you happen to be grandstanding chair off) then there is unlikely to be an issue on deducting against CT moderate amounts.

[VectraMan]

Can't a company donate money to a charity or another business if it chooses to? A company can surely give money away as it wishes?

The question is whether it reduces your CT bill. And it won't. You'll still have to pay the CT on the money you no longer have.

The factor that springs to my mind is that if you get a backer's reward, this might be classed as some sort of BIK should you take this personally. For instance in this particular case one option is they'll cater for X people as a reward... if a company with X employees used this to provide a meal for their employees would THAT be OK?

Does it make a difference my company backs, or backs a reward option?

I'm thinking I'll probably do it personally since I hadn't considered the backers' reward angle previously but it'd be interesting to hear more.

I guess if you crowdfund the development of some device and that ends up with Yourco getting that device, then that's really no different to purchasing an asset. If it's to pay for a meal; buying you lunch wouldn't normally be allowed, but a Christmas meal is. So perhaps it would be okay to do this to pay for the company Xmas party.

[eek]

They generally take longer to get back to me than CUK does. Also, it might be relevant to other people in future. Why keep asking accountants the same question? THen next time you CAN ask why they didn't search Can't a company donate money to a charity or another business if it chooses to? A company can surely give money away as it wishes?

The factor that springs to my mind is that if you get a backer's reward, this might be classed as some sort of BIK should you take this personally. For instance in this particular case one option is they'll cater for X people as a reward... if a company with X employees used this to provide a meal for their employees would THAT be OK?

Does it make a difference my company backs, or backs a reward option?

I'm thinking I'll probably do it personally since I hadn't considered the backers' reward angle previously but it'd be interesting to hear more.

Donating to a charity is a tax deductable expense. Donating to a Social Enterprise or Community Interest Company is strangely not tax deductable (that's caused others issues in the past).

[d000hg]

Have you asked your accountant?

They generally take longer to get back to me than CUK does. Also, it might be relevant to other people in future. Why keep asking accountants the same question? THen next time you CAN ask why they didn't search

not a registered charity, and not a wholly and exclusively business expense.

Can't a company donate money to a charity or another business if it chooses to? A company can surely give money away as it wishes?

The factor that springs to my mind is that if you get a backer's reward, this might be classed as some sort of BIK should you take this personally. For instance in this particular case one option is they'll cater for X people as a reward... if a company with X employees used this to provide a meal for their employees would THAT be OK?

Does it make a difference my company backs, or backs a reward option?

I'm thinking I'll probably do it personally since I hadn't considered the backers' reward angle previously but it'd be interesting to hear more.

[FarmerPalmer]

not a registered charity, and not a wholly and exclusively business expense.

I would suggest that a payment could be made from your taxable profit, can be expensed, but can NOT be written off against tax

but as NLUK has said, check with your accountant

[northernladuk]

Let me have a look....

You are not cut out... Nope, not that one..





Done a search?.. Nah..





Read the first time.. Bloody hell.. where is it...

Ah!! Found it...

Have you asked your accountant?

[d000hg]

Some people I know well are crowdfunding for a "food-waste cafe" in my general area (In case anyone's interested: The REfUSE Cafe and Van, a Community Crowdfunding Project in Chester Le Street, Durham on Crowdfunder)

I would like to contribute to this but I was wondering if there is any benefit/downside to doing so as a company rather than personally. They're a community business of some sort not a charity to the best of my knowledge (I'm checking this) so there would not be gift-aid to factor in; I'm wondering then if giving via my Ltd leads to some tax savings.

If I did it via my Ltd are there any special rules or would I just create an account on the site "d000hg Ltd" and make a payment from the company account/company PayPal?

Note this is in the serious section please