Monetary Donations From Sole Traders & Partnerships
Tax benefits from making monetary donations from Sole Traders and Partnerships work in a different way to companies. As a sole trader/partnership you pay Income Tax on profits, as opposed to Corporation Tax. This means you can take advantage of the tax relief that is available to individuals through your Self Assessment Tax Return. We will always try to ensure that this information is up to date but this information is intended only as a guide, and for up to date information you should always consult your accountant, tax advisor or HMRC. The information on this page was last revised in January 2013. For more information please see the HMRC website here.
Donations attract tax relief in two ways – firstly we can claim Gift Aid on your donation at the basic rate of 20%. This means that for every £100 you donate to us it is worth £120, at no extra cost to you. Secondly, if you pay the higher rate of tax you can claim extra tax relief when completing your Self Assessment form, but you can’t write off your donations against your profits.
Sole Trader Declarations
In order to allow us to claim Gift Aid on your donation at no extra cost to you, you will need to complete a Gift Aid declaration, a very simple form that is available here. You only need to make one declaration per charity and can ask that this declaration covers current, past and future donations to us. If you wish to change this in the future you simply need to let us know.
A single partner can make a Gift Aid declaration on behalf of all of the partners of a partnership, providing the terms of the partnership agreement allow for this. The declaration needs only show the name and address of the partnership.
If this is not the case then each partner would need to state their name and address on the Gift Aid declaration, but these can all be added to one form.