This means that for every £1 donated, you can claim an extra 25 pence.
Individual Tax Relief
If you pay higher rate tax and make a donation through Gift Aid you can claim some tax back too.
Corporation Tax Relief
When your company makes a qualifying donation to a charity the amount paid is treated as a ‘non-trade charge’ – this means your company can make a claim in its Company Tax Return to set the amount of the donation against its taxable profits.
I have seen some great articles on this recently for example ‘Tips & Advice Tax’ (Indicator Issue 22 September 2012)
A few years ago the tax rules were updated and the government added one aimed at ensuring those who took “reasonable care” in preparing their tax returns shouldn’t be penalised if the return is incorrect.
But HMRC don’t always remember the “reasonable care” rule for example J R Hanson and HMRC (H and HMRC) as reported in ‘Tips & Advice Tax’ Article HMRC overzealous on penalties.
H incorrectly applied a capital gains tax deduction he wasn’t entitled too and was hit with penalty for £14000, however, H used an accountant to prepare the returns and he had shown reasonable care so HMRC lost the case.
In addition under current rules HMRC could not pass the penalty to his accountant, so that means the accountants PI cover remains intact.
Here are some tips on how to show you have taken reasonable care:
1. You must supply your adviser with all the information that is relevant, don’t hold back information
2. Check your tax return agrees with the information you supplied
3. Ask about entries you don’t understand and keep records of the answers, you don’t need to become an expert you just need to keep notes
There are cases where reasonable care hasn’t been a successful defence for example Mr Waseem Shakoor v HMRC  highlight by www.rossmartin.co.uk as they point out in the this case the taxpayer didn’t follow the the 3 steps above and it was commented at the Tribunal that this was:
“a case of shutting one’s eyes to what either was or ought reasonably to have been seen as incorrect advice – if, indeed, any such advice was actually given –a matter upon which we entertain significant doubt.”
In summary the dispute was between the Project Manager and the employer over the building of new boarding accomodation the quality of work was not disputed but there were delays.
The Employer claimed that if the Project Manager had acted with care and skill, it would have ensured the Contractor execute the building contract (rather than letters of intent) and that would have produced a more advantageous outcome in the dispute with the Contractor for delay, as the Contractor would have been liable for liquidated damages.
When submitting its fee proposal for this project, the Project Manager attached its standard terms and conditions, including a limitation of liability which had not formed part of the Project Manager’s appointment on two earlier projects at the college. A limitation on liability incorporated into the Project Manager’s retainer, on this third project was found to be unenforceable as it did not meet the requirement of “reasonableness” as set out in the Unfair Contract Terms Act (UCTA) 1977.
Had the limitation been enforceable, the Project Manager’s liability would have been limited to the amount of its fee, which totalled £111,321. The Employer was instead awarded damages of £226,667.
The case has been circulate and written up by Law Now
The Salvation Army have been running a charity shop from 695-697 Christchurch Road Boscombe since the 1970’s but earlier this year they decided to end their lease and moved out in August. Its a double shop unit, lots of space, toilets and an office. The Salvation Army have been an absolutely brilliant tenant always helpful and excellent payers.
We are using Nettleship Sawyer (Steve Chiari) email@example.com to market the property, we are are happy to give a short lease or a long lease, on a long lease we would agree to a rent free period and break clauses or to refit the unit.
What would you do to market a Retail Unit like this? Do you know any one that would like a shop?