I’m wondering if anyone has any insight/experience on the below.
I’m planning to support a local charity football team by creating and maintaining a sports website for them.
As a UK Limited company am I able to account for this as a charity donation for the time I spend(an hourly rate) on this project and the ongoing monthly hosting costs?
Thanks
That really should be a question for your accountant.
Thanks Paul but I’m not sure there is an issue with me posting to the community for general insights/experiences.
Because any advice you act on from the community in terms of how you treat an expense will result in tax adjustment. And ordinary people on a forum do not have insurance to cover any bad advice they give.
As an accountant I require indemnity insurance incase a client has a further tax charge or penalty as a result of bad tax advice. If you were to receive bad advice also, who could you claim against for any penalties, interest or underpaid tax that you may suffer as a result?
Further this forum is for the operating of the software and not for accounting advice. They can of course explain how to post the transactions but only once its established the correct treatment of them.
Hi Steve,
There is guidance on the government website about time spent working for a charity at this link.
And at this link they say:
If your company temporarily transfers an employee (secondment) or an employee volunteers for a charity in work time, you can deduct any costs as normal business expenses.
Continue to pay the employee (which can be yourself) and run PAYE on the salary as usual. You can deduct the costs (including wages and business expenses) from your taxable profits as if they are working for you as normal.
Record the hours spend in secondment or volunteering as you would normally within your timesheets to enable you to pay them as normal. Ensure the time is allocated to the Charity rather than your clients.
Note that the Government website says that You can’t claim the costs of employees on secondment or volunteering at a community amateur sports club (CASC) and you can check if your local charity team is one if it is listed here.
About monthly hosting costs, the first link also says
Donating money
Your limited company can pay less Corporation Tax when it gives money to a charity or community amateur sports club (CASC).Deduct the value of the donations from your total business profits before you pay tax.
If the Ltd company pays the hosting fees for the charity’s website, I’m not sure how that is different from the Ltd company donating the same amount of money to the charity for them to then pay the hosting fees?
Hope this helps a bit.
It’s clearly different because donating real money is clear that it’s a donation. Paying for hosting in your own business name is not so clear.
Wholey and exclusively related to business use comes in play.
Donate the actual money every month, get them to register for hosting. Avoids any issues.
You keep saying this but it is not your forum and there is a category for asking this exact thing added by those who did create and maintain the forum. If they didn’t want people to ask accounting questions then they would say so. If you’re not insured to reply then don’t feel you have to.
I’m not the only one that says it. And I’m only protecting the person asking at the end of the day.
I can’t stop anyone else from replying with bad advice. But if you feel I should ignore it, fair enough.
I should also mention that bad advice instead of good advice from your own accountant undermines their ability to provide a service and could cost you more in the long run when they have to get you out of it.
Thank you Darren for the pointers, that’s exactly what I was looking for.
Hi Steve,
I host a few charity websites and can certainly advise you at a minimum.
You can get some great wordpress plugins for organising matches events etc…
I do have my own hosting services and can help you. I am not sure how much help you need? Are you experienced in Wordpress?
Many Thanks
Steve
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