Payment of proceeds of sale of product to a charity

[jeremygadd]

I filmed a conference for a charity and produced DVDs to sell so that they can raise funds. The total cost for a DVD is £10. We agreed that I would take £3.50 per sale to cover production costs and admin and the charity would get £6.50. The DVDs are sold from my website and payments are mostly taken via PayPal. For each sale I send £6.50 to the charity by my PayPal account. How do I tag this entry?

In my QF PayPal account it shows the following entries:

• Payment to PayPal (fees)
• The payment (with the name of the customer who bought the DVD)
• The payment to the charity.

It’s only the last part that I am stuck on as I know how to process the first 2.

[QFMathew]

Hi @jeremygadd

There is a code for charitable donations 8200. You could tag it straight there, or you could raise a purchase invoice using that nominal.

It’s worth noting that there are few things to consider with donations. It may be worth just checking out these two links from HMRC:

• Tax when your limited company gives to charity
• Tax relief when you donate to a charity (Sole trader & partnerships)

Hope that helps!