Tax when your limited company gives to charity

6. Sponsoring a charity

Charity sponsorship payments are different from donations because your company gets something related to the business in return.

You can deduct sponsorship payments from your business profits before you pay tax by treating them as business expenses.

What qualifies

Payments qualify as business expenses if the charity:

  • publicly supports your products or services
  • allows you to use their logo in your own printed material
  • allows you to sell your goods or services at their event or premises
  • links from their website to yours

If you’re unsure whether a charity payment qualifies as a sponsorship payment or a donation, contact the charities helpline.