Tax benefits from sponsorship?
Discussion
Example: If I owned a motorcycle tuning/parts company and wanted to sponsor a privateer racer in club supersport or similar racing and gave him £5000.00 for the season would there be any tax benefits/breaks by doing this?
N.B I haven't got a motorcycle shop neither do I race motorbikes.
N.B I haven't got a motorcycle shop neither do I race motorbikes.
Simple sponsorship counts as advertising so is fully tax deductable. Howver, there are some pitfalls to be avoided.
£5,000 does seem a lot - although that does depend on the overall size of your business and how it compares with your normal advertising costs.
If your business is a limited company, you have to ensure that the person/organisation you are sponsoring has no direct connection with you or directors of your company. In other words, you or your business gets no benefit from the payment, other than having your name associated with the activity/person beiong sponsored.
£5,000 does seem a lot - although that does depend on the overall size of your business and how it compares with your normal advertising costs.
If your business is a limited company, you have to ensure that the person/organisation you are sponsoring has no direct connection with you or directors of your company. In other words, you or your business gets no benefit from the payment, other than having your name associated with the activity/person beiong sponsored.
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