Giving to charity?

[tomj]

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Guys and Gals,

What with keiths news, live8 etc etc, is there any incentive for companies to give money to charity??

Ok, forget the fact we should all give from our own pockets now and then, what I want to know is does the governemet allow companies to make donations and have those offset against tax?

This government wastes enough of my money so if I could give more to where I actually wanted to see my money spent I would !

cheers, Tom.

[Kandevil]

Taken directly from my fundraising pack from Macmillan Cancer Relief:

Companies get tax relief against their corporation tax profits when they give money to charity, whether it is a one-off or a regular payment. There is no limit to the amount of money they can give.

Since the 2000 Budget the Gift Aid (tax relief) scheme for companies has changed. Under the old scheme companies would get a net donation & fill in a company Gift Aid Certificate. The charity would then claim the tax back from the Inland Revenue. Now the charity claims nothing from the Inland Revenue and the money donated goes straight to the charity.

Old Way
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Company sponsors £100
Company pays Inland Revenue £22
Total cost to company £122

Charity gets £122 (£100 from company + £22 from IR)

New Way
---------
Company sponsors £122
Company pays Inland Revenue £0
Total cost to company £122

Charity gets £122

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I'm cycling 600k across Mexico in aid of Macmillan Cancer Relief, if you'd like to sponsor me you can here
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[tomj]

so does that mean I could gift like 100% of my corporation tax to charity instead of paying it to the IR???

so if I owed the IR £50k i could give the £50k to charity?


on edit:

For companies
To give through Gift Aid, a company simply gives the money to charity. The company does not deduct any tax from the donation and does not need to make a Gift Aid declaration to the charity. Tax relief is given by deducting the amount of the donation from profits prior to calculating corporation tax. For further details about the effect of a donation on corporation tax liability, contact your company’s tax office.

thats from: http://www.givingcampaign.org.uk/mas...trefr-4bus.htm


so does that mean if i gifted £10.....£10 would be taken off of my profits before tax and if i was being taxed at 10% say i'd get £1 off my tax??


totally bloody confused

[tomj]

http://www.hmrc.gov.uk/pdfs/ir64.htm