Sally
Question asked by james dodson 7 years ago
Please can you tell me how to record a donation of services - which were worth £1500 no money has passed hands, do we record it in a journal ? what is the best way
Hi
Many businesses don't bother to do this however as the sum is substantial I agree it's worth recording. So you create a journal entry crediting Income and debiting "Donations" expense account.
There might be an issue if the recipient is not a charity but, as long as it is a pure donation, ie you get nothing in return, then you should be OK with it being tax neutral, ie the expense offsets the income.
There's no problem with VAT as VAT is charged on the discounted value of any service, in this case £0.
Best answerHi Paul
It was for a service we donated. Hope you can help, many thanks
Whoops Hi Sally!
Hi James - is this a service you are donating or one being donated to you?
You must 