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Charitable donation charge to CT

Charitable donation charge to CT

 I am trying to file a CT return using HMRC's own software. Company made a charitable donation and there's a box in the Tax Comp to write it back as a non-trading expense. But I can't find any facility for then re-charging it in the 'Charges Paid' box of the CT600 (box 35), so no relief is given in the calculation. The software won't let me do this manually and there's nothing in the Tax Comp part of the package that permits it. Anyone managed to do this? Thanks.

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26th Mar 2011 10:00

Why?

Why should you get any tax relief if it's a non-trading expense?

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26th Mar 2011 11:47

@Peter

Gift aid donations are relievable.

http://www.hmrc.gov.uk/manuals/ctmanual/CTM09060.htm

Don't know the answer to the op's query though.

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26th Mar 2011 13:04

Only gift aid

I know gift aid ones are relievable but all other non-trading donations are not.

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26th Mar 2011 16:52

I presume it's Gift Aid

 So far as I can see any donation to a charity qualifies for Gift Aid provided it meets the tests about no significant benefit to the company etc (see link on taxhound's post above).

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26th Mar 2011 17:07

Different to personal tax

It does seem that it's totally different to the personal tax Gift Aid.

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28th Mar 2011 08:48

Local expert ?

Ask Nichola R M - her firm does tax software IIRC.

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29th Mar 2011 12:12

Explanation

 Long interaction with HMRC's online helpdesk reveals the following: Box 35 (charges paid) is NOT supported by their own software! There is an update coming in April, but they don't know if this will be fixed in it.

So as the return is due at the end of April, it seems their preferred solution is for me to rush out and buy commercial software. Obviously I would prefer not. Is there any chance that they will accept non-iXBRL tax comp if I

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29th Mar 2011 12:13

Explanation (without truncation)

 Long interaction with HMRC's online helpdesk reveals the following: Box 35 (charges paid) is NOT supported by their own software! There is an update coming in April, but they don't know if this will be fixed in it.

So as the return is due at the end of April, it seems their preferred solution is for me to rush out and buy commercial software. Obviously I would prefer not. Is there any chance that they will accept non-iXBRL tax comp if I explain why?

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29th Mar 2011 12:28

Alternative work-around

If the company's profitable and can fully relieve the donation, just don't add it back.  If the company's loss making and can't relieve the donation, add it back and don't claim.  In between, just add back the non-relievable element.

Then you can write to them, thus making an umprompted disclosure of your deliberate error (that's not caused them to lose any revenue - potential or otherwise - anyway), and wave hello to your father's brother, Robert.

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30th Mar 2011 00:11

I like it

 Very neat, Ernest N Dever. Thank you.

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