Sponor Training

[anthony]

Have already sent this message off to the accountant, just waiting on a response...

Would it be possible for my LTD to sponsor/pay/what ever the legal term is, a person who is not employed by me to pay for a training course for them?

(not sure if this is business or accounting query....sorry if wrong place)

[malvolio]

Yes but (a) it's commercial nonsense, (b) it won't be tax-deductible from YourCo and (c) the recipient would have to pay tax on the value of the training.

Put it this way: YourCo is not a piggy bank, it is a trading entity in its own right. Your duty as a director is to ensure it operates legally and maximises its profits. Giving away money achieves neither of those objectives.

HTH...

[jmo21]

Your company can pay for whatever it wants.

Which should lead you to another question....

[filthy1980]

Yes but (a) it's commercial nonsense, (b) it won't be tax-deductible from YourCo and (c) the recipient would have to pay tax on the value of the training.

Put it this way: YourCo is not a piggy bank, it is a trading entity in its own right. Your duty as a director is to ensure it operates legally and maximises its profits. Giving away money achieves neither of those objectives.

HTH...

out of curiosity then, could a PSC not sponsor the local kids football team?

Is that not expensible as marketing / advertising?

[jmo21]

out of curiosity then, could a PSC not sponsor the local kids football team?

Is that not expensible as marketing / advertising?

Ah, so the person is paying for their training course themselves, and you are sponsoring them to complete it, with the money going to charity!?

[anthony]

Yes but (a) it's commercial nonsense, (b) it won't be tax-deductible from YourCo and (c) the recipient would have to pay tax on the value of the training.

Put it this way: YourCo is not a piggy bank, it is a trading entity in its own right. Your duty as a director is to ensure it operates legally and maximises its profits. Giving away money achieves neither of those objectives.

HTH...

Totally agree with all of this and fully understand as well.... but as filthy1980 says, this could be classed as a form of Marketing which would increase my company brand awareness. The training that this person would go on would be in the financial market, which is an area i would want to expand into...

[filthy1980]

Ah, so the person is paying for their training course themselves, and you are sponsoring them to complete it, with the money going to charity!?

wasn't a question related to the OP's point on training

more about just sponsoring another local org / charity, surely that's expensible, the same way football stadiums and shirts are sponsored?

[northernladuk]

Surely paying for sponsorship from a marketing perspective and brand awareness is a world apart from sponsoring training. Completely different animals.

This person wouldn't be closely connected to you would they.

I bet the account said no which isn't what the OP wants to hear so has come to find an answer he wanta

[anthony]

Surely paying for sponsorship from a marketing perspective and brand awareness is a world apart from sponsoring training. Completely different animals.

This person wouldn't be closely connected to you would they.

I bet the account said no which isn't what the OP wants to hear so has come to find an answer he wanta

Yup just heard back and no was the answer ... not closely connected at all, just wanted to see if I could help them in any way.... If you dont ask, you never know....

[pr1]

if you're set on being a good samaritan you can help them by personally paying for it for them (with your after-tax takehome income)