My company has discounted our services to a local charity by £2,500, compared to the normal cost for our services. Can that discount be classed as a donation for tax purposes?
Arthur Weller replies:
If you look at the guidance at: www.gov.uk/taxlimited-company-gives-to-charity, you can see that a company can get relief for donations of:
a. money;
b. equipment or trading stock (items it makes
or sells);
c. land, property or shares in another company
(shares in your own company do not qualify);
d. employees (on secondment); and
e. sponsorship payments. But services are not in the list. I suggest that you invoice the charity the full £8,500 and then donate £2,500 cash to the charity.
