Charity donation paid through Ltd company?

[W4NTED]

I have been invited for a charity ball next month. All proceeds are to go towards project hope but in return there is a three course dinner including drinks!

My questions is that If i make a cheque payable to Project Hope through my Ltd company am i doing wrong?

yes I will be attending the dinner and drinking away but the cheque will be issued to Project Hope?

Thanks

[Eric Mc]

You won't be breaking any rules but the charitable donation will not be eligible for any tax relief in the company.

Whay not pay it personally and allow the charity to claim Gift Aid instead?

(On the assumption that they are allowed to claim Gift Aid on the ticket prices - they may not be).

[W4NTED]

Thank Eric, no gift aid on these thus the thought of paying through the company.

[Eric Mc]

A trade gets no tax relief on charitable contributions - unless the charity has some bearing on the trading activity of the business.

[dcw@pr]

I thought it could if the charity was local to the business and could therefore create goodwill from a donation?

[Eric Mc]

dcw@pr said:

I thought it could if the charity was local to the business and could therefore create goodwill from a donation?

Yes - that is how the Revenue define "bearing on a business". In other words, it is allowable under the "wholly and exclusively for the purposes of the trade" definition of an allowable expense.

The exmaples they give are local hospitals, or a police benefit fund. given that local police patrol the are where the business is based.