Pay tax on Sponsorship?!?!?
Discussion
You would only pay tax on any profit you made after expenses for delivering the services for which you are sponsored. So if you receive £100k for advertising on a race car for a full season in Britcar and it costs you £75k to run the car and deliver those services, you pay tax on £25k.
teamHOLDENracing said:
You would only pay tax on any profit you made after expenses for delivering the services for which you are sponsored. So if you receive £100k for advertising on a race car for a full season in Britcar and it costs you £75k to run the car and deliver those services, you pay tax on £25k.
Thanks TeamHolden....I was hoping that would be the case othewise it would almost defeat the purpose of getting sponsorship as over half of it would go on a tax bill. Will just have to make sure we have a lot of expenses. 
teamHOLDENracing said:
You would only pay tax on any profit you made after expenses for delivering the services for which you are sponsored. So if you receive £100k for advertising on a race car for a full season in Britcar and it costs you £75k to run the car and deliver those services, you pay tax on £25k.
Trust a bloody accountant to be able to advise chapter and verse, OK, clever dick, here's my question, Race costs for season............ £100k
Sponsorship income............... £ 10k
Loss............................. £ 90k
Can I roll over Indexation relief, slip in a bit of Taper, whack CTA ATT after me name, all prior to the 6th of course, and provided I'm under 65, which is miles off yet, use my lifetime cap and optional 6 year claw back capital gains allowances and transfer my assets to extend my 10% right over the current 24%, as it drops to 18% on the 5th which is not that clever, and what if I spoused the whole bloody lot ????
Racing Rod said:
teamHOLDENracing said:
You would only pay tax on any profit you made after expenses for delivering the services for which you are sponsored. So if you receive £100k for advertising on a race car for a full season in Britcar and it costs you £75k to run the car and deliver those services, you pay tax on £25k.
Trust a bloody accountant to be able to advise chapter and verse, OK, clever dick, here's my question, Race costs for season............ £100k
Sponsorship income............... £ 10k
Loss............................. £ 90k
Can I roll over Indexation relief, slip in a bit of Taper, whack CTA ATT after me name, all prior to the 6th of course, and provided I'm under 65, which is miles off yet, use my lifetime cap and optional 6 year claw back capital gains allowances and transfer my assets to extend my 10% right over the current 24%, as it drops to 18% on the 5th which is not that clever, and what if I spoused the whole bloody lot ????
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