I hope your well, coming here for some advise. I have bank transferred £250 from my personal current account to my sole trader business account as and this is tagged as drawings.
I would like to pay this £250 from my business account to a Community Centre (CEC) bank account as a donation for their foodbank to cover a weeks worth of food for families who rely on such a incredible service.
I would like to expense this where possible to reduce my total annual turnover. Can anyone advise if this is possible, or if i must mark this as a proprieter drawing transaction.
The donation is not a business expense, therefore you can’t claim it against your profits. The phrase to always bear in mind is, is it “wholly and exclusively for business purposes”. If not, then it’s personal.
If you have added Gift Aid, then you can add it to your tax return, and get a little bit of tax relief that way.