Charity donations are not only a great way for your business to give something back to the less fortunate, but also an efficient way to reduce your corporation tax bill.
Supporting worthy causes is worthwhile and it’s also one of the most tax-efficient ways to give to your favourite charity if you are a contractor or consultant that owns a limited company.
Supporting charities through your limited company means that you can donate and sponsor causes close to your heart and reduce your corporate tax bill at the same time. Donating reduces your pre-tax profits and therefore the amount of Corporation Tax due so it’s one of the most simple and tax-efficient ways to give to charity for any Limited Company owner.
Take a look at our simple guide Tax-efficient donations to charity through your limited company for more information on how to record donations and sponsorships in an HMRC-compliant way.