Company Expenses

Ideally, you should ensure that you have a written sponsorship agreement in place that details the sponsorship’s value, duration and expected return on investment.

Costs may be disallowed if you pay the sponsored party and there is no clear business benefit to the company.

HMRC considers the commercial benefit to your business, looking at factors like negotiation, location relevance, exploring alternatives, and the impact on your business trade.

Sponsoring a relative, close friend, or having a personal involvement in the sponsored activity could be seen as non-business purposes.

Yes, but you must establish that the sponsorship primarily benefits your business and you receive some business benefit in return.

HMRC is cautious to ensure that expenses claimed as sponsorship genuinely serve business purposes, preventing misuse.

If there’s a non-business purpose involved, you won’t be able to claim those costs as expenses.

Yes, but there’s a condition: sponsorship costs must be exclusively for business purposes to be tax-free.

Sponsorship is a way to promote your business by associating it with events, shows, personalities, or clubs. It offers advertising opportunities, hospitality perks, tickets, and more, helping you reach a wider audience.

Stationery and postage costs may be claimed if in the performance of your duties. This can cover printer consumables, general stationery used and necessary postage, courier and carriage costs.