Sponsoring a football team - allowable expense?

[northernladuk]

Thanks. Do you just put it through as advertising?

I can't remember to be honest. I thought there was option that mentioned sponsorship in FA. But yeah advertising will do.

[Nut]

I also sponsor the shirts for our junior rugby teams and have done so a number of years. Put it through the books and don't worry about it.

Thanks. Do you just put it through as advertising?

[Nut]

I've sponsored the local rugby club where my kids play in the juniors, as well as sponsoring barrels of beer at beer festivals in aid of both the rugby club and a different charity.
I've had different advice on how to account for this from different accountants at the same firm.
The first one wasn't keen on putting it through as advertising budget as he felt having my Ltd Co name on marketing material / rugby shirts etc wouldn't really generate any new business (I was inclined to agree), so I put that particular transaction through as charitable sponsorship (no CT relief in this case)
Recently the beer barrels have been put through as advertising budget as per advice from my new accountant, which does qualify for CT relief.
Obviously in both cases I'm avoiding paying income/dividend tax on the amounts donated.
I can't vouch for the legitimacy of either approach from an HMRC perspective, but I have emails from my accountants telling me how to do this.

Thanks, charitable sponsorship might be the way to go.

It’s only the local under 9s team so it’s not exactly going to be megabucks. Doubt I’d get much out of the advertising but would be nice to help them if I can.

Has given me a few things to think about, cheers.

[northernladuk]

I also sponsor the shirts for our junior rugby teams and have done so a number of years. Put it through the books and don't worry about it.

[MrLoveBucket]

I've sponsored the local rugby club where my kids play in the juniors, as well as sponsoring barrels of beer at beer festivals in aid of both the rugby club and a different charity.
I've had different advice on how to account for this from different accountants at the same firm.
The first one wasn't keen on putting it through as advertising budget as he felt having my Ltd Co name on marketing material / rugby shirts etc wouldn't really generate any new business (I was inclined to agree), so I put that particular transaction through as charitable sponsorship (no CT relief in this case)
Recently the beer barrels have been put through as advertising budget as per advice from my new accountant, which does qualify for CT relief.
Obviously in both cases I'm avoiding paying income/dividend tax on the amounts donated.
I can't vouch for the legitimacy of either approach from an HMRC perspective, but I have emails from my accountants telling me how to do this.

[BoredBloke]

I knew a guy who did this for his local pub side. He said he never got any business from it but got plenty of free beer from the lads who played in the team. He did it for a few years and said he'd get more back in free beer than the sponsorship cost him. It was tax deductible....but it was also 25 years ago, so things may have changed

[jamesbrown]

Handlebar indeed! I don't know what sort of louche operation you run, but here in the Dutch Antilles, we choose our advisers carefully.

I don’t always aggressively avoid tax, but when I do, I prefer my snake oil salesman to sport a monocle and novelty facial hair as a talking point for jurors.

[Lance]

Hi
Just wondering how this sponsorship would work in terms of expenses

The nippers football team is looking for a sponsor, and I figured I may be able to do it via Ltd co.

I did a bit of research and there seems to be some rules about not being involved in the org being sponsored (does kid playing for the team count as involved?)

And it must be for the purposes of business. Company name/logo will be on the kit so would be advertising.

Would this be allowable or am I likely to cause myself grief?

Thanks

If it's a small donation, for a genuine local team (i.e. not a scheme), it's fine as advertising. I have done a couple of teams for £25/£50. I get my company name in the match book.
If it's for a larger team and involves match day tickets or other goodies, then best as business enterntainment. Just make sure you take clients occasionally.

[Old Greg]

Sounds promising. Is it QC approved and does the QC have a reassuringly well-groomed handlebar moustache?

Handlebar indeed! I don't know what sort of louche operation you run, but here in the Dutch Antilles, we choose our advisers carefully.

[jamesbrown]

May I humbly suggest the Oude Joris Max 120 On-Side structure?

Sounds promising. Is it QC approved and does the QC have a reassuringly well-groomed handlebar moustache?

[Old Greg]

You're going to need a snazzy name and a farcical number of offshore intermediaries to disguise this "sponsorship".

But, yeah, football schemes are as safe as houses, innit?

May I humbly suggest the Oude Joris Max 120 On-Side structure?

[jamesbrown]

Would this be allowable or am I likely to cause myself grief?

You're going to need a snazzy name and a farcical number of offshore intermediaries to disguise this "sponsorship".

But, yeah, football schemes are as safe as houses, innit?

[Old Greg]

Hi
Just wondering how this sponsorship would work in terms of expenses

The nippers football team is looking for a sponsor, and I figured I may be able to do it via Ltd co.

I did a bit of research and there seems to be some rules about not being involved in the org being sponsored (does kid playing for the team count as involved?)

And it must be for the purposes of business. Company name/logo will be on the kit so would be advertising.

Would this be allowable or am I likely to cause myself grief?

Thanks

1. Is the team registered in the Dutch Antilles?
2. Can your kid get an appearance fee to use his / her personal allowance?

[Nut]

Hi
Just wondering how this sponsorship would work in terms of expenses

The nippers football team is looking for a sponsor, and I figured I may be able to do it via Ltd co.

I did a bit of research and there seems to be some rules about not being involved in the org being sponsored (does kid playing for the team count as involved?)

And it must be for the purposes of business. Company name/logo will be on the kit so would be advertising.

Would this be allowable or am I likely to cause myself grief?

Thanks