For over 30 years Richard Edwards Group LLP has been providing excellent advice and a first class service to our clients. We have a large portfolio of clients and service businesses across many sectors. Book one of our FREE INITIAL MEETINGS to start benefiting from our expertise today.

Seconding employees to a charity

Source: HM Revenue & Customs | | 30/01/2018

There are special rules in place when a limited company gives to a charity. This can include Corporation Tax relief for certain donations made to registered charities or community amateur sports club (CASC) as well as capital allowances for giving away equipment that has been used by your company.

There are also special rules if your company temporarily transfers an employee to work for a charity. This is known as a ‘secondment’. If this happens, the company can deduct any costs as normal business expenses.

The company must continue to pay the employee and run Pay As You Earn (PAYE) on their salary. The company can set the costs (including wages and business expenses) against taxable profits as if the employee was still working for the company (and not seconded to the charity).

The same rules apply for employees that volunteer for a charity during working hours.

Planning note

The costs of employees on secondment or volunteering at a community amateur sports club (CASC) cannot be claimed in this way.



 

Latest News

Responding to a County Court claim
15/05/2018 - More...
It is important that any correspondence received from the County Court is dealt with promptly. This should include taking proper legal advice when appropriate. Usually, a

When might you be due a tax refund?
15/05/2018 - More...
HMRC has issued helpful guidance that explains when you might be due a tax refund and how to make a claim. According to HMRC you may be able to claim a refund if you: are


Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login