ddawood
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Tax on sales for charity
I have created a product that I am selling to raise money for charity (I do not have a registered business). I have set up a website/store online for sales and aim to make more than £1,000. I have spent around £800 that I want to get back, and all money made after that will be donated to a specific registered charity. Will I have to pay tax on the sales of the items or if this will be tax free because I am donating the entire amount to charity? The gov website is not very clear about this, it just says donations to charity are tax free – but my situation feels different because of the fact that I am selling goods. Technically, I will be making more money than I spent, which is regarded as profit, but if I give it all to charity surely this ceases to be considered profit? I would like to know if I will be taxed and if I need to complete a self-assessment to declare the money made even if I give it away as a charitable donation.