charity donations?

[Bluebell]

Hi I was wondering how charity donations could go as an expense of business?

I recently requested some dressing up clothes and my friend gave me a huge amount including some practically brand new stuff. Also a pair of jessie glittery cowgirl boots This stuff is worth quite a bit I would say but she doesn't want any money she wants me to donate to charity. Can I claim this as an expense?


Thank you for any advice,

[MrAnchovy]

They can't - any donation you make is treated as a personal donation, not one by your business. You can make a gift aid donation so the charity can claim tax back, but you will still pay Class 4 National Insuarnce on the amount.

So the most tax efficient thing to do is explain the situation to her, pay her £x for the items which you can treat as an expense, and SHE can gift aid the same sum to charity (if she pays tax) - so you get 29% of the amount back by paying less tax and NI, and the charity gets 25% MORE because of the gift aid.