Claiming PayPal Donations as a Business Expense

Matrix23

I'm a self-employed sole trader. If I buy software for business use I can claim that as a business expense, but if I use some freeware and make a donation to the software developer via PayPal, can I also claim that donation as a business expense in the same way?

What about if I received donations in a similar way, for software that was freely provided - would I need to declare those donations as income?

Many thanks.

System

I think that you can only claim for donations to registered charities

Receiving donations would be income

HappyMJ

Matrix23 wrote: »

I'm a self-employed sole trader. If I buy software for business use I can claim that as a business expense, but if I use some freeware and make a donation to the software developer via PayPal, can I also claim that donation as a business expense in the same way?

What about if I received donations in a similar way, for software that was freely provided - would I need to declare those donations as income?

Many thanks.

A sole trader cannot claim donations as a business expense. The charity can claim the tax already paid on the donation if it is given as a gift aid donation.

An expense incurred to pay for something that is free would also be debateable. I would ask the software developer for an invoice so that you can claim it as a business expense.