Tax when your limited company gives to charity

5. Seconding employees

You can deduct any costs as normal business expenses if:

  • your company temporarily transfers an employee to work for a charity (known as a ‘secondment’)
  • an employee volunteers for a charity in work time

Your company must continue to pay the employee and run Pay As You Earn (PAYE) on their salary. You can set the costs (including wages and business expenses) against your taxable profits as if they were still working for you.

You can’t claim the costs of employees on secondment or volunteering at a community amateur sports club (CASC).