How do I record charity donations – Limited Companies?

Limited companies can donate money to charities and claim the corporation tax back on the value of the donation. Sponsorship of a charity or community sports association is different to a donation, but can also be claimed. If you are donating to charity in return for something (eg a raffle, or for tickets to an event), you can only claim a percentage of the donation back (25% of the donation up to £100, £101-£1,000, £25 can be claimed, £1,001 or more, 5% of the donation, up to a maximum of £2,500). Simply spend the money out of your company bank account and ensure the transaction is logged against the relevant category in Xero.