Sponsoring myself to compete in a sport

[sideburnsdave]

Hi all,

I'm currently trying to figure out if it's possible for me to sponsor myself through my ltd company (of which I'm the director and sole employee) to compete in a form of motorsport.

I can use the car for advertising the company name (I'm an O&G engineering consultant) but don't know if this is justifiable. I suppose there could be potential clients watching?

Any thoughts?

Cheers.

[borderreiver]

What, like sponsoring yourself to attend the Munich Beer Festival as long as you wear a MyCo T-Shirt? Or a Hash-a-Thon in Amsterdam?

Over to you, NLUK

[northernladuk]

Instead of trying to figure it out why not just spend 5 minutes on google and find the answer.

Search on here would work and I am sure your accountant will give you the answer once he has stopped laughing.

[northernladuk]

50 seconds. First result in google...

Specific deductions: advertising: sponsorship: purpose

Typically (but not exclusively) there may be a non-business purpose where:

the sponsored person is a relative or close friend of the business proprietor or controlling director, or
the business proprietor or controlling director has a personal involvement in the sponsored activity (such involvement often pre-existing the sponsorship).

How people run professional careers/run a business and not do basic google searches is really beyond me.

[TheFaQQer]

How people run IT careers/run a business and not do basic google searches is really beyond me.

The OP isn't in IT.

(That, and we have you to do it for us!)

[Craig at Nixon Williams]

There is no chance that HMRC would see that as being 'wholly and exclusively' for the benefit of the company - it would be seen as you funding your hobby, not as a commercial expense.

Hope this helps!
Craig

[northernladuk]

The OP isn't in IT.

(That, and we have you to do it for us!)

Dam autocorrect. I put in professional and it corrected it to IT... honest

[Wanderer]

I'm currently trying to figure out if it's possible for me to sponsor myself through my ltd company (of which I'm the director and sole employee) to compete in a form of motorsport. I can use the car for advertising the company name (I'm an O&G engineering consultant) but don't know if this is justifiable. I suppose there could be potential clients watching?

Hmm, what's this O&G line of business? Oil and Gas? Obstetrics and gynaecology? If the motorsport isn't really closely related to your business then it's probably not going to work but run it by your accountant because I'm sure they would like a good laugh.

However, if you worked on (say) designing data logging systems for race cars then sponsoring motorsport might be allowable in that it's going to be a good way to get yourself "known in the business" as well as providing valuable input to your products R&D.

[Martin at NixonWilliams]

Hi all,

I'm currently trying to figure out if it's possible for me to sponsor myself through my ltd company (of which I'm the director and sole employee) to compete in a form of motorsport.

I can use the car for advertising the company name (I'm an O&G engineering consultant) but don't know if this is justifiable. I suppose there could be potential clients watching?

Any thoughts?

Cheers.

To be an allowable expense the cost of sponsorship must be incurred wholly and exclusively for the purpose of the business.

It is important to remember that sports sponsorship is not a donation, it is a business expense, and is expected to show a return on investment.

Although it may be commercially feasible for you to achieve business from this, I doubt HMRC will see it this way if success cannot be demonstrated.

If, on the other hand, you sponsored an unconnected person, it would be much easier to justify of course - whether you achieve any business from it or not.

I hope this helps!

Martin

[Jeebo72]

Hi all,

I'm currently trying to figure out if it's possible for me to sponsor myself through my ltd company (of which I'm the director and sole employee) to compete in a form of motorsport.

I can use the car for advertising the company name (I'm an O&G engineering consultant) but don't know if this is justifiable. I suppose there could be potential clients watching?

Any thoughts?

Cheers.

Set up a motor racing business and loan it the money...sorted.