Tag Archives: sponsor

Sponsorship Tax Relief

I’ll sponsor you!

You may have thought of paying sponsorship money from your business to an individual perhaps or a club or competition.

Can your business get tax relief on this payment? As ever, it’s not always a straight forward ‘yes’ or ‘no’ answer but more of a ‘it depends…’

To be allowable, the payment must be wholly and exclusively for the purposes of your trade. Normally when you sponsor a person, team or event, you will be looking to use this as part of a wider marketing strategy and you will be looking for all the publicity you can get out of it. If your motives for making the payment are to increase awareness of your business or brand, then this does serve the purposes of your trade. However, if the motives are to secure some private benefit and any marketing benefits are a ‘bonus’ then it will not tick the ‘wholly and exclusively for the purposes of your trade’ box. You may receive some kind of private benefit from sponsorship that is ‘incidental’ to the sponsorship and not the reason you made the payment – this sponsorship payment would still be allowable for tax.

If you sponsor a close relative or friend, or if you have some personal involvement in the sponsored activity, then it may be harder to prove that the payment is wholly and exclusively for the purposes of your trade. If you think your sponsorship payment is allowable despite it being to a closely connected party, then keep records of the sponsorship agreement, for example :

  • Details of any correspondence or contracts including negotiations over the cost
  • Details of why this particular person or event was chosen to sponsor over and above any other possible candidates
  • Details of how the business itself will be promoted and how an appropriate target audience will be reached through this sponsorship
  • Procedures in place to review the effectiveness of the sponsorship on improving your sales and increasing your customer basis

If you are thinking of making sponsorship payments and are unsure if they will be allowable for tax purposes, please don’t hesitate to contact us on 01872 271655 or email Lydia.williams@kelsallsteele.co.uk

Clare’s Charity Swim

Kelsall Steele Director Clare Vaughan is taking to the water again, following her successful  Swimathon for Sports Relief last year.

Last March Clare completed 100 lengths, which is 2.5Km, and thanks to many generous donations raised over £900 for Sports relief  this April she is hoping to achieve the same in aid of Marie Curie.

Clare will undertake the swim on Saturday 18th April.

Update – Swim Successfully Completed!

The day came and Clare successfully completed 100 lengths of the pool, well done Clare and thanks to everyone who pledged money in sponsorship. So far Clare has raised £655, however if you’d still like to make a donation and support Marie Curie you can donate to Clare via her Swimathon page

Here are a few action shots!

 

Clare said of the challenge “I am challenging myself to 100 lengths after having part of my bowel removed in October 2014 due to my Crohns Disease. I managed 100 lengths last year for Sport Relief and I hope I can get back to fitness.

I’m raising funds for Marie Curie to help them to provide care to over 40,000 people living with terminal illnesses across the UK.”

Once again, if you would like to support Clare in her efforts to raise money for such a great cause you can do so via her Swimathon Page