Sponsoring an athlete

paddi

Registered User
Messages
16
I am self employed in a partnership business with my spouse. We are heavily involved in the sport horse industry on a leisure level and lucked out recently in breeding a very talented horse. We would like to sponsor a pro rider to compete and train the horse for us. This would include paying her a weekly sum for keeping the horse at her yard and training it, paying her entry fees and in return our business name gets publicised in the horses name and also on her equipment. Is it possible to do this under a partnership, and what would be involved. The rider in question has an equine business registered so can provide paperwork etc.

I suppose my question is, is this possible?
is there limits on the amount? and is it a case of keeping receipts and claiming off tax?
any help appreciated! we are just thinking about it at the moment and seeing is it possible, so any advice will be brilliant!
 

RedOnion

Frequent Poster
Messages
6,209
I think a more accurate title would be "can I claim tax relief through my business for my personal hobby?".

The answer would be no.

But does it happen? Yes. I would say its prevelant in particular sports that are very expensive.

Would you get away with it? Maybe. But once there's a tax audit, you'll regret doing it.

Sponsorship itself is not tax deductible, because its not a benefit to the business. Usually the way around that is by sponsoring a registered charity or sporting organisation, and the business can claim relief (e.g. sponsoring GAA jerseys). This doesn't apply here.

But advertising is also a legitimate business expense. So the question becomes is the 'advertising' the business will get worth the amount its costing the business?
 

Paul O Mahoney

Registered User
Messages
1,308
I am self employed in a partnership business with my spouse. We are heavily involved in the sport horse industry on a leisure level and lucked out recently in breeding a very talented horse. We would like to sponsor a pro rider to compete and train the horse for us. This would include paying her a weekly sum for keeping the horse at her yard and training it, paying her entry fees and in return our business name gets publicised in the horses name and also on her equipment. Is it possible to do this under a partnership, and what would be involved. The rider in question has an equine business registered so can provide paperwork etc.

I suppose my question is, is this possible?
is there limits on the amount? and is it a case of keeping receipts and claiming off tax?
any help appreciated! we are just thinking about it at the moment and seeing is it possible, so any advice will be brilliant!
Can I ask is the horse going to compete?
 

paddi

Registered User
Messages
16
yes and it would be at affiliated shows with proven membership, registration and competition record
 

paddi

Registered User
Messages
16
thanks for the advice so far. our business does work in that area, we are a design company that do design (brochures/websites etc) for big organisations in the sport already. so we would be using the sponsorship to get our name out there and network at shows as well. the sponsorship of a pro rider would give us great access to meet more clients. our logo and website name would also be appearing on items the horse and rider were wearing on the day. there are also other branding opportunities it would give us, such as the business name appearing in programme on day and called through Loud speaker. the Horsebox will also have signage for company. since we do some design work already in that area we would love to grow that market.
 

RedOnion

Frequent Poster
Messages
6,209
the sponsorship of a pro rider would give us great access to meet more clients.
Ah, there's some merit to the sponsorship element as advertising if you can get business from it. But I think funding the training of your own (privately owned) horse would have to be separated out from the real sponsorship element. E.g. how much advertising would you pay if it was a complete strangers horse involved?

It all comes down to the test of "wholly, exclusively and necessarily" a business expense to be tax deductible.

By the way, although you've said you bred the horse, I'm assuming you've confirmed the horse breeding/ ownership is not a taxable activity for you.
 

Baby boomer

Registered User
Messages
460
Correct.

But I think paying for the training of your horse doesn't meet the criteria wherever you stop!
Yes! Agreed.

.......Or is it? I wonder where exactly the line gets drawn? What about the purchase of "corporate boxes" at sports stadiums? I wonder whether the directors who generally personally avail of them are charged BIK?
 
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