Charitable giving, vat, tax confusion!

[giveforever]

Hi all,
Any one have any views/experience of this situation.

I'm setting up a business that will give a certain proportion of income/profits to good causes.
My questions is what's the best way to approach this?

Should I set up a Ltd company or stay as a sole proprietor/partnership?
Does the amount donated come from pre or post tax profits?
Does registering for Vat have any implications for giving donations?

Is there a good book that explains all this or should I just go and see an accountant?
Thanks for any advice,
Nick

[accountantpete]

There are two sytems in operation.

1) For self-employed the donation is not deductable from your earnings in computing your overall tax bill but the recipient can claim back the tax that you have effectively paid from the govt.

2) Corporate donations are deductable from profits so the recipient just gets what is donated.

You can read more at http://www.hmrc.gov.uk/businesses/giving/index.htm

The choice between self-employment/ltd co should be based on other factors- as you suggest I'd see an accountant to discuss it further.