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Payment to UK Registered Charity for WingWalk

Can a company get a deduction for a payment to a charity for a Wing Walk

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The director of a company has asked whether the company could claim a deduction for a payment to a UK registered charity he is looking to do a wing walk for - the paymetn is being made directly to the charity.

Looking at the guidance, I feel he is receiving a 'benefit' in return for the 'donation' the value of which would almost certainly be in excess of the £25.00 threshold (donation would be £360) - though personally I would rather chew my own leg than do the walk!!

Has anyone come across similar before / have any thoughts?

Thank you in advance :-)

 

Replies (13)

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RLI
By lionofludesch
18th Mar 2021 18:27

Sounds like he's buying a wingwalk.

Is it £360 or £300 + VAT ?

If the latter, he's obviously buying a service, isn't he ?

But tell us more .......

Thanks (1)
Psycho
By Wilson Philips
18th Mar 2021 18:46

As above, more info needed. What are the relationships between all parties concerned? I imagine - but could be wrong - that this is one of those fund-raising activities where the participant has to raise a minimum level of donations in order to take part.

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Replying to Wilson Philips:
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By EllaB
24th Mar 2021 16:01

Apologies for the delay, I am not best friends with the AZ jab right now! there is a target of £300.00 per person but this is a target and not a requirement. The actual amount to be raised is open. The payment of £360.00 is going directly to the charity - he has not received an invoice, just details of how to make the payment.

Other than the above he has no other information.

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By janewanless
18th Mar 2021 19:07

Would the company pay the same amount for a 3rd party to do the walk? Or is it something the director wants to do with the Co paying for it?

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RLI
By lionofludesch
18th Mar 2021 19:10

In particular, clarify the relationship between "a UK registered charity he is looking to do a wing walk for " and "he is making a donation of £360".

It doesnt sound like he's doing the wing walk for the charity to me. It sounds like he's paying the £360 to do the wing walk and he's doing the wing walk for his own "amusement".

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Replying to lionofludesch:
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By EllaB
24th Mar 2021 16:07

Thank you and apologies for the delay - the AZ jab is not my best friend at the moment!

From the limited information he has given me the payment is going directly to a UK registered charity - but I am equally sceptical about it.

The content he forward to be specifically says 'And finally this is of course a fundraising event for XXXX. As mentioned below there is a target of £300 per person. But this is a target only - any amount you can raise is still beneficial to the charity'.

So in addition to making the payment they are hoping he will raise £300.00

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A Putey FACA
By Arthur Putey
18th Mar 2021 19:18

Doesn't seem like the charity gets much benefit, once the cost of the flight is deducted. But I suppose its ok as long as he does it naked and wears a facemask.

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By paulwakefield1
19th Mar 2021 09:20

Is it along the lines of an auction of promises where the Wingwalking company donates a flight to the auction which the director bids for and pays £360 to the charity ?

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Replying to paulwakefield1:
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By EllaB
24th Mar 2021 16:08

No, the payment is going directly to the charity - who I presume are then arranging the plane. He is also being asked to raise £300 in donations to the charity as well.

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Replying to EllaB:
RLI
By lionofludesch
24th Mar 2021 17:48

EllaB wrote:

No, the payment is going directly to the charity - who I presume are then arranging the plane. He is also being asked to raise £300 in donations to the charity as well.

What if he only raises a fiver ?

Can he still go ?

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Replying to EllaB:
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By Paul Crowley
25th Mar 2021 16:50

Sounds to me as if he is really buying a wing walk At a group price through the charity
Not a donation
Directors loan

Thanks (1)
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By lesley.barnes
19th Mar 2021 09:59

From the info your client has provided I think that he is doing this wing walk for a registered charity, there are one or two advertised on t'internet. They seem to be you raise a set amount of sponsorship in one case £599 and it's free or you pay a fee of £399. I would say in your clients case I agree with you - he is making a donation to the charity and receiving a benefit??for his donation. If he was serious about raising money for the good cause he would be raising sponsorship for his wing walk, has he done anything like that? It sounds like he has purchased an experience albeit through a charity.

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Replying to lesley.barnes:
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By WhichTyler
25th Mar 2021 16:28

I know these aren;t the sort of flights they had in mind, but the principle is similar

All sponsorship payments are eligible for Gift Aid if participants pay the cost of flights and accommodation themselves.

https://www.gov.uk/guidance/gift-aid-what-donations-charities-and-cascs-...

So his payment for the flight (minimum payment for a service) is not a donation, so not eligible for GA, but any donation over and above that is.

He could ask the charity to confirm, as they are bound to have been asked before...

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