How does charity donations etc affect the tax paid by businesses?
daviebhoy69 asked:
I am looking to gain sponsorship/donations for my charity marathon.
When i ask businesses for donations etc, what is there incentive?
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As I have previously advised you, businesses can only claim a deduction for expenditure incurred in the course of business and so sponsorship would normally be included in the advertising budget. It doesn’t matter how much this comes to.
An individual in business would receive higher rate tax relief (assuming they are a higher rate taxpayer) if they Gift Aided the money - but they could do that without sponsoring you.
In the UK charitable donations are not tax deductible.
In practice, small donations to charities are usually allowed as deductions in calculating the profits of a business.
Are you raising money for a registered charity? If your cause is not a registered charity then there are conditions to be satisfied before the business can claim a deduction. the link below is to the Revenue manual which gives the details.