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Invoicing for charity work when "donation in kind"
I do a lot of work for charity as a donation-in-kind, how can I raise an invoice which will allow the donation to be offset against corporation tax?
I’m confused!
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Inappropriate?Hi
Unless you actually need to raise an invoice, you could just use Journal entries. For example, you credit 'Profit & Loss' and debit 'Charitable Donations' by the value of your donation. This would effectively reduce your 'operating profit' for CT purposes by the chosen amount.
I am not an accountant, so whether this is the correct way to do things I don't know :) For auditing purposes I guess you'd need some written acknowledgement from the charity of the time donated, and be able to demonstrate your valuation is reasonable (i.e. based on your normal billable rate)
I’m not qualified to answer definitively, but this seems reasonable!
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This answers the question
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Hi Daniel, Thanks for taking the time to reply. Realistically I need to be able to record the work as "invoiced" otherwise I'm going to get very confused (something that happens easily enough already!)
Appreciate your thoughts though, might be a good temporary work-around
