Limited co paying advertising costs (to support motorsport)

[Racea]

Hello,

Just wondering if anyone would know if my limited company could pay for advertising on my car that will enter hill sprint events?

Could I pay a set or regular amount for advertising through the season or is this just red rag to the hmrc bull?

I am a risk consultant if that matters.....

Cheers.

[CubanPete]

Surely that is just another form of income and tax liable.

[Racea]

That is what I would like to ascertain - if that is the case, the answer is no I can't.

Cheers.

[Eric Mc]

You are correct - no you can't.

Or, to be more correct, yes, the company can sponsor the car but you would be taxed personally on the "benefit" - so no point really.

It's a fairly common question and one which HMRC have been quite categorical about in teh past.

[Racea]

Thank you - I thought that maybe the case so nothing lost. Cheers

[tight fart]

How about sponsoring someone else?

And then finding a sponsor yourself? Wink wink.

[CubanPete]

It would still be income.

[ellroy]

Could you not set up ABC racing car company and have sponsorship paid to that entity then Eric?

I'd be very surprised if there was much profit to be made mind.

[drmotorsport]

How about looking at it from the other direction. I was a director of an IT support company and fancied sponsoring myself, but as Eric points out, it's a benefit in kind. I did however end up plastering the car in advertising for my own business in the hope that it would generate extra sales/profit/dividends for me

[Eric Mc]

There have been a number of HMRC Tax Cases where HMRC has challenged the "sponsorship" by the company of sporting activities in which a director or a connected person (such as a family member" was involved. In every case, HMRC has won.

[530dTPhil]

Eric Mc said:

There have been a number of HMRC Tax Cases where HMRC has challenged the "sponsorship" by the company of sporting activities in which a director or a connected person (such as a family member" was involved. In every case, HMRC has won.

Correct, this was the situation even twenty years ago. Don't ask me how I know.