Best Payroll and Timekeeping Services in Blackpool

Many of us are keen to support charitable causes, and owning a thriving business can give us the tools to be able to do this, but as a business owner, you may be wondering how do charity deductions work? Your limited company can pay less tax when it gives money to a charity. As a business owner, you will deduct the value of the donations from your total business profits before you pay tax, therefore paying less tax on total profits. It's important to understand that you can't deduct payments that: ❌ 1. Are loans that will be repaid by the charity ❌ 2. Are made on the condition that the charity will buy property from your company or anyone connected with it ❌ 3. Are a distribution of company profits (eg dividends) To find out how your business can save tax by donating to charity, get in touch and one of our chartered accounts will be happy to help.