Employer Supported Volunteering

Expenses

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Company supports a registered charity, and will provide a few employees as volunteers for an event that the charity is undertaking (it's a children's charity and the volunteers will be looking after the children).

The company also makes donations to the charity, all tax deductible.

There will be a cost to the charity in respect of the volunteers, which the donor company would like to fully cover, and they are looking for the most tax efficient wau of doing so. Initial thoughts were a donation to the charity, and then the charity would pay the expenses, but are there other options?

I'm really struggling to find any meaningful guidance on this.

Replies (8)

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By WhichTyler
18th Sep 2018 13:12

What precisely is the cost to the charity in respect of the volunteers? (Not in £, what is it for)

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Replying to WhichTyler:
By SteveHa
18th Sep 2018 14:08

They are taking a group of disabled kids to Kilimanjaro. The expenses will be mainly travel, and possibly overnight accommodation/feed (though the latter may be paid by the volunteers themselves)

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Replying to SteveHa:
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By Accountant A
18th Sep 2018 14:14

SteLacca wrote:

They are taking a group of disabled kids to Kilimanjaro.

WTF?! Have they told whoever provides their employer's liability insurance?!

Who's paid for the DBS checks?!

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By MJShone
18th Sep 2018 14:12

Is it a local charity?

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By SteveHa
18th Sep 2018 15:37

To answer AccountantA and MJShone,
It's a big, national charity, who should be well aware of their obligations regarding DBS and insurance.

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Replying to SteveHa:
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By MJShone
18th Sep 2018 15:50

OK - so as it's a national charity, the same argument as applies to non-GA donations to a local charity won't fly. (Other than out the window!)

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Replying to SteveHa:
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By Accountant A
18th Sep 2018 15:52

SteLacca wrote:

To answer AccountantA and MJShone,
It's a big, national charity, who should be well aware of their obligations regarding DBS and insurance.

I've maybe read it wrong but, for me, I'd be very nervous indeed about the status of the company and employees. If it's (1) the company donating to the charity and (2) giving paid (?) leave to the employees to go on the trip, then I could probably get comfortable with that.

Saying "will provide a few employees" just sounded as if (from a legal perspective) the employees were acting in their capacity as employees, which is why I mentioned employer's insurance. I don't know the detail of DBS but, again, from a liability perspective, I'd be very wary.

It's very laudable but there's a danger of business and charitable activities being blurred to the potential disadvantage of both.

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Replying to Accountant A:
By SteveHa
18th Sep 2018 20:18

They will be seconded to the charity for the duration of the trip, in accordance with ESV rules. The issue is how to get funding to the charity to meet the expenses without causing a tax hit on the employees, and whilst obtaining relief for the company.

As I say, a separate donation should do it, but is there a danger that will be looked through by HMRC.

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