Charitable donations in respect of subcontractor work completed
I work in a manufacturing company where we have several staff who work inspecting the goods built ensuring they are good for sale.
We currently have a gentleman working as a subcontractor in our inspection department as they are short-handed. He has provided us an invoice for his past weeks work but the money is actually being paid to a registered charity he runs rather than to himself.
My first thought is that this is subcontract work and shall be entered onto the ledger as indirect labour but as the money itself is being paid to a registered charity surely this is classed as a charitable donation? Both are obviously disallowable for tax purposes but are treated differently.
My thoughts are either is fine but am I missing anything else or just being very thick!
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