Donations (to a school!)

Donations (to a school!)

Didn't find your answer?

Hi folks,

A client has asked if he can pay his son's school fees through his LTD, as a company donation.

The school is a registered charity, and the amounts requested are clearly voluntary (voluntary educational supplements).

There are no invoices issued to him personally.

What do you think?

Replies (11)

Please login or register to join the discussion.

Portia profile image
By Portia Nina Levin
16th Sep 2014 13:03

I think

You need to look at CTA 2010, sections 195 to 198.

Thanks (0)
avatar
By duncanedwards
16th Sep 2014 13:09

Subject covered frequently. Not sure how school fees can be voluntary.

Seems to lack the appearance of a charitable donation.

The director will do well to argue successfully that no taxable benefit arises.

Thanks (0)
By johngroganjga
16th Sep 2014 13:12

If the donations are voluntary why doesn't he send his son to the school anyway and direct his donations to the poor and needy in less fortunate parts of the world?

Thanks (2)
avatar
By WhichTyler
16th Sep 2014 13:29

If the donations are voluntary...

.. and he (or his family) get no benefit from them, then they are not fees...

Thanks (0)
avatar
By Justin Bryant
16th Sep 2014 13:32

If you search this website
You will come across the grandparent trust solution to this, which works fine in my view.

Thanks (0)
avatar
By CA-London
16th Sep 2014 14:52

Thanks for the responses.

To clarify, these are not school fees (apologies if this was unclear in my original post).

The school have simply requested a voluntary contribution.

 

Thanks (0)
Replying to nick farrow:
avatar
By cbp99
16th Sep 2014 15:08

.

CA-London wrote:

Thanks for the responses.

To clarify, these are not school fees (apologies if this was unclear in my original post).

The school have simply requested a voluntary contribution.

So to be even more clear, if no donation were made (or promised etc), the school would still educate the son?

Thanks (0)
Replying to Justin Bryant:
avatar
By CA-London
16th Sep 2014 15:24

As far as i am aware, yes

cbp99 wrote:

CA-London wrote:

Thanks for the responses.

To clarify, these are not school fees (apologies if this was unclear in my original post).

The school have simply requested a voluntary contribution.

So to be even more clear, if no donation were made (or promised etc), the school would still educate the son?

 

As far as i am aware, yes

Thanks (0)
Replying to paulwakefield1:
Stepurhan
By stepurhan
16th Sep 2014 15:30

Check

CA-London wrote:
As far as i am aware, yes
It seems more than likely that the "donations" are in fact school fees. If the director is insistent that they are donations unconnected to their son's education, at least get them to say as much in writing. I would expect HMRC to take close interest in such an arrangement.
Thanks (0)
By johngroganjga
16th Sep 2014 15:18

"School fees" was your actual

"School fees" was your actual description.

So the school's willingness to educate the son is unconnected with the father's willingness to direct a donation towards it? 

Thanks (0)
By The VAT Doctor
17th Sep 2014 23:18

Gift aid

Not my area, but what the heck!

Is it likely that the school (a charity?) is likely to seek gift aid on these purely voluntary donations?  If so, I would expect the revenue to be somewhat suspicious these are school fees in reality.

Personally, I'd take the view that the £25k or so that I have already paid in fees is more than enough and would give the donations to a really needy cause, who can also claim gift aid (and give you an income tax deduction without question?)

wow, pretending to be a proper full tax specialist!

Thanks (0)