Sports sponsorship

[leftie]

Let's say our company bought a nice racing catamaran and had it painted in company logo/sails etc.


Legitimate business expense as advertising????????? or unpleasant surprise when the tax man knows the directors are at the helm at weekends???

[Eric Mc]

See related post below from dylamp and my respnse.

[leftie]

Ah! I wondered where I had the idea from!

Sounds like a non starter. Let's try outward bound weekends for the staff on a hired catamaran.

[Eric Mc]

Watch out for HM Revenue and Customs definitions of "Staff Entertainment" - Income Tax (PAYE Benefits etc), Corporation Tax and VAT definitions, restrictions etc.

What always amazes me is, are you not discussing these things with your accountant? He/she should really be your first port of call on any of these types of query.

[braemarblue]

I put my company name and contact details on the back of my clay shooting jacket like most people do who shoot and can claim it all as advertising. Legitimate for the last 5 years. The business operates in IT.

[Eric Mc]

I wouldn't see any problem there. You are not using your business to support your hobby, you are using your hobby to advertise your business. Quite a different thing.

There would be no argument about a company putting its web address or company logo on a director's racing car for instance. Totally legitimate business cost that no one would argue with.

[Incorrigible]

Eric Mc said:

There would be no argument about a company putting its web address or company logo on a director's racing car for instance. Totally legitimate business cost that no one would argue with.

But how much could you take off the business for it

If matey bungs his boat in company colours, that would be OK too I imagine, but how much of the running costs would be acceptable

[Eric Mc]

The cost of having the logo applied definitely.

If the car is used SOLELY as a promotional vehicle i.e. a mobile billboard, you might be able to claim some of the running costs and capital allowances but you would have to thread VERY carefully and be ready to put up a fight if challenged. Use by the directors/partners/employees or relatives and connected persons would have to be VERY carefully monitored AND disclosed both in the accounts and for tax purposes - to compaly with accounting and tax regulations.

[leftie]

Eric Mc said:

Watch out for HM Revenue and Customs definitions of "Staff Entertainment" - Income Tax (PAYE Benefits etc), Corporation Tax and VAT definitions, restrictions etc. What always amazes me is, are you not discussing these things with your accountant? He/she should really be your first port of call on any of these types of query.

My accounant is a very honest man and tells me in no doubt to stop sailing so close to the wind. I alos only see him twice a year and the best ideas come to me at odd hours.!

[Eric Mc]

Speak to him more frequently then

[leftie]

I think Eric that what you said on another post is right: that loyalty to accountants extends decades. We moved ofices 10 miles North but kept our accountants because of the advice we got. Now I see him when I deliver the accounts, and again when I pick them back up when we sweep up all the curent issues and future plans.

[Eric Mc]

I agree - if you find an accountant who you are staisfied with and you believe does the right thing by you, stick with him/her. However, one problem with being "loyal" to an accountant is that you may not notice if the accountant is "falling behind" with his technical knowledge or is giving the "best" advice - as you have no benchmarks against which to compare him.

PH is good in that respect because you might pick up on aspects of a situation you hadn't realised or had not thought to ask your accountant about. It's amazing how non "procactive" many accountants are.