Sponsorship and Tax

Evo

Hi,

Im doing some car racing and hoping to get some sponsors for next year (some bigger than this year) but I'm a sole individual, I'm not a register business or registered for vat. My question is if companies start writing cheques to me personally, do I have to pay tax for them? I'm currently a student and not in full time work so the most I'd get in wages a week would be 100 euro for abit of work in a shop. Should I go down the road of registering a company for my race team as a non profit organization or what way do I work it? Surely if I have to start paying tax on sponsorship half my budget would be given back to the tax man!

My other question is what would happen if I'm selling advertising space on the car to companies not looking for sponsorship?

thanks!

Mr. Incognito

Well,

That's an unusual one and tbh it has me stumped. At a guess I would hazard you'd probably have to register for self assessment and file a tax return that declares the income from sponsorship and advertising.

I certainly wouldn't go down the route of registering a company unless the amounts you are talking about are substantial as there can be a lot of red tape with companies.

Galdonagh

Hi. in my experience of car racing you will most likely spend more money on keeping your car on the road than you will get in sponsorship. I think that you should register for tax but your tax bill will be low if your expenses exceed your income.