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Volunteers should claim travel expenses
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Many charities have volunteers who travel to 'work'. It is rare for the volunteers to submit travel expenses, but this is a mistake.
If the volunteers must travel to the charity, it is worthwhile to encourage them all to claim travel expenses at the maximum allowable by the Inland Revenue.
Firstly, this becomes an allowable expense that can be set against any tax on earned income of the charity.
More importantly, they can then give the travel expenses back to the the charity using Gift-Aid, which means the IR boost the amount given.
Net result is a substantial gain for the charity in return for a little more admin hassle on the part of the treasurer.
:T
If the volunteers must travel to the charity, it is worthwhile to encourage them all to claim travel expenses at the maximum allowable by the Inland Revenue.
Firstly, this becomes an allowable expense that can be set against any tax on earned income of the charity.
More importantly, they can then give the travel expenses back to the the charity using Gift-Aid, which means the IR boost the amount given.
Net result is a substantial gain for the charity in return for a little more admin hassle on the part of the treasurer.
:T
0
Comments
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Not quite so good if the charity doesn't have any 'earned' income so doesn't have to pay tax ...kalico wrote:Firstly, this becomes an allowable expense that can be set against any tax on earned income of the charity.
If they pay more in income tax than they give in charitable donations - sorry to be picky when many people know this already, but for those that don't, it's important! We have a fair few student volunteers, for example, for whom this bit wouldn't work.kalico wrote:More importantly, they can then give the travel expenses back to the the charity using Gift-Aid, which means the IR boost the amount given.
A nice idea. And IMO no charity should decline to pay reasonable travel expenses! However, do ask the charity before you start to do this - show them kalico's post if it helps! We have a limit of up to X miles on what can be claimed, for example, and when we've had volunteers crossing the Severn Bridge we've usually agreed to pay their toll costs rather than toll plus mileage.kalico wrote:Net result is a substantial gain for the charity in return for a little more admin hassle on the part of the treasurer.
:T
Mind you don't underestimate the admin hassle ...
Signature removed for peace of mind0 -
I agree with you saying about the adimn hassle
I work for a uk charity managing theor shops and the amount of paperwork we had to do to claim volunteer expenses back was ridiculous.
We eventualty stopped it
James0
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