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29 Jan 2009, 13:51 (Ref:2382087) | #1 | ||
Racer
Join Date: May 2007
Posts: 310
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Sponsoring Team Apparel + Renting to yourself
Hi Guys,
Another sponsorship-type question or two that my accountant is yo-yo'ing on. 1) I have all my own racing gear, paid for privately. However the team I run with is 'smartening things up' a little and wanted to get new overalls etc that had been embroidered with the various corporate logos, including mine. Can I recoup all(or part) of this since I already have perfectly good racing gear and I'm only doing it to get the logo on there? 2) I want to invite quite a few former clients to the start of the season, thought it would be a good way of maybe drawing some new work out of it and just keeping in touch for future business. Would there be any problem in doing this as I'm racing and enjoying myself, which the taxman doesn't seem to like? 3) I'm looking at renting out some equiptment via the business as a sideline to my normal work - obviously I'd use my car as a demonstrator. Will I end up incuring wraith of taxman since I actuallly like racing and could be gaining some benefit from this? The accountant seems to think all of the above will just provoke a long winded and stressful inspection, valid or not. The numbers involved are worth doing it I believe, especially since they are genuine cases, provided it's not going to cost me more in accountants fees and time off to justify them. Anyone else done this, or anything similar? |
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29 Jan 2009, 16:27 (Ref:2382167) | #2 | ||
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Join Date: Jul 2003
Posts: 6,828
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I'd be with the accountant on this. There was a guy on here a while back had just that problem and IIRC had been presented with a h-u-g-e tax bill.
"Those that sup with the devil must do so with a long spoon" Although....it may depend on whether your (racing) company is Ltd or not. ISTR there was a court case where barristers couldn't claim for their wigs, but guys with quite trendy corporate clothing bought by their Ltd company could offset it. But I'm not an accountant, it's only gossip and does not constitute advice if i'm wrong! PS Can I lobby for the clothing contract? Al will lobby for the stickers for the demonstrator I'm sure LOL |
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Midgetman - known as Max Tyler to the world. MaxAttaq! |
29 Jan 2009, 16:55 (Ref:2382178) | #3 | ||
Racer
Join Date: May 2007
Posts: 310
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LOL - it's being sorted out by the team to get a bulk deal from the supplier, my hands are tied! (not in a I-work-for-the-FIA-and-like-it-rough way mind!)
It's nuts really - I mean, fair enough on the team threads, there is an argument there possibly on dual-use..... but the other two are completely business. I am however pragmatic and don't want to fight over relatively small numbers with the sodding government, who always win in the end (e.g. Artic Systems .... re-write the law for the win!). |
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1 Feb 2009, 08:13 (Ref:2383565) | #4 | ||
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Posts: 920
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Can't help with UK law, but I have successfully claimed for running my track car, all racegear, etc., for over 20 years. Under that claim, it was NOT a limited company, but I was registered for VAT/GST as a 'sole trader' and with immaculate bookwork. GST/VAT audit had no problems as I had a car for domestic use and another car for business use.
Also now have an involvement in three limited companies and no problems there either. Luckily, one is manufacturing race suits anyway, but others are not motorsport related. There have been several test cases here, and most have been won by the racer, so setting precedents. Best of luck, but it may pay to find an accountant who races! |
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I always did march to a different drumbeat - Peter Brock |
1 Feb 2009, 11:26 (Ref:2383617) | #5 | ||
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Join Date: Aug 2004
Posts: 14,699
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Yeah but thats New Zealand not good old Blighty, I would say interesting as it is the previous post is totally irrelevant to the UK situation. Personally I would'nt bother.
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You can't polish a turd but you sure can sprinkle it with glitter! |
2 Feb 2009, 01:54 (Ref:2383948) | #6 | ||
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Most of NZ law is based on GB law....! The tax man grabs enough as it is to prop up those who contribute nothing, so any gain you can get is worth it.
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I always did march to a different drumbeat - Peter Brock |
2 Feb 2009, 07:52 (Ref:2384024) | #7 | ||
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Join Date: Aug 2004
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That may be true in general but tax laws are changed yearly at the wimm of the current chancellor whoever that may be and I am sure New Zealand would do the same independantly why even on the Isle of Man and Jersey they are different and thats a few miles off the coast not literally on the other side of the world. This not supporting yourself thing came in a while ago but before that it was common practice to sponsor yourself as I and many others did but was then advised not to. I know some people write it off as using the car to 'test' equipment or if they are actually in the business of selling anything associated with the race car so maybe thats worth a look into, trouble with me testing if vinyl graphics will fly off may not wash maybe selling the actual graphics might though!
Last edited by Al Weyman; 2 Feb 2009 at 07:55. |
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You can't polish a turd but you sure can sprinkle it with glitter! |
2 Feb 2009, 10:34 (Ref:2384131) | #8 | ||
Racer
Join Date: May 2007
Posts: 310
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The problem isn't are they valid business justifications (I think all 3 are) it's if the government would agree the same. You don't get rich, or sleep well, opposing the tax office.
Al, I think you are right I'm afraid. |
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2 Feb 2009, 13:06 (Ref:2386574) | #9 | ||
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Join Date: Aug 2004
Posts: 14,699
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One of the accountants in the group that do my accounts had a road going Lola T70 (I kid you not) maybe he wrote this down as a company car! :-)
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You can't polish a turd but you sure can sprinkle it with glitter! |
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