Sponsorship is a way for businesses to obtain benefit by bringing its name, products or services to the public’s attention. It is often in the form of advertising, whereby the business tries to obtain a benefit by association with a popular, successful or up and coming star.
Look out for the stars of the future and become involved in their early days. As they grow, hopefully, your business will grow.
Is sponsorship allowable for tax?
There is no reason why the expense should not be allowed but it is critical that you can demonstrate that the following points have been considered.
The sponsorship is wholly and exclusively for the purposes of the trade. For example:
Keep good records of all activities associated with the Sponsorship. These should include:
Show that it is a commercial decision, for example:
This summary is based on our understanding of HMRC guidelines and may not apply to your individual circumstances. Each sponsorship deal must stand scrutiny by HMRC who have the final say in what is acceptable.
Contact us on 01773 747990 for specific advice relating to your personal situation.
Accounting Matters - The Friendly Face of Accounting.
Member since: 10th July 2012
Hi, I'm Sarah. I've lived in Heanor with my family for over 10 years and I'm passionate about our beautiful little corner of this historical county. If you know of something that's great about our area,...