The disastrous earthquake in Haiti has dominated our screens for the past couple of weeks, with thousands of lives lost, or in grave danger, and aid only making its way to the country slowly.

If you have been touched by this tragedy, UNICEF http://www.unicef.org.uk/ is calling for businesses to make a contribution, which can be generated in a number of ways:

A corporate donation is a straightforward transaction of funds, which UNICEF will then publicise to key stakeholders. If you want to get your whole business involved, employee fundraising provides an opportunity for everyone to show their support. Face to face appeals, targeting potential donators through your database or website, or adding a minimal charge to bills, which goes straight to charity, are all ways in which you can engage your customers in the cause.

For companies and sole traders who wish to give to charity, tax relief is available:

If you’re self-employed or a partner in a business, you can take advantage of the tax relief available for individuals on gifts of money, claiming them on your Self Assessment tax return.

If you give money to a charity or Community Amateur Sports Club (CASC), you can use Gift Aid http://www.hmrc.gov.uk/charities/gift-aid.htm. This increases the value of your donation at no extra cost to you, by allowing the charity to reclaim basic rate tax on your gift. If you pay higher rate tax you can claim extra relief on your donations.

Gifts of money made to a charity by a company should be paid gross, before tax is deducted. These donations are deductible from the total profits of your business when calculating Corporation Tax.

Companies can claim for Corporation Tax Relief, as long as the donation is a payment of money that is not a distribution of profit, such as a dividend. Qualifying donations can come from the company or a ‘connected’ person, which includes relatives. For more information about qualifying criteria and the benefit value, visit: http://www.hmrc.gov.uk/businesses/giving/companies.htm.

When your company makes a qualifying donation to a charity the amount paid is treated as a ‘non-trade charge’ – this means your company can make a claim in its Company Tax Return to set the amount of the donation against its taxable profits.

Your company should keep normal accounting records to support entries on your Company Tax Return along with any other relevant documentation; for example correspondence with the charity in relation to the donation such as a ‘thank you’ letter.

You must keep your tax records for at least six years after the end of the accounting period to which they relate. If HM Revenue & Customs (HMRC) makes any enquiries about your Company Tax Return you will need to keep the records until the enquiries are completed.