Business Guide
THE POINT TO POINT AUTHORITY LIMITED
BUSINESS GUIDELINES FOR THE NEW POINT TO POINT HORSE SPONSORSHIP SCHEME
This new Scheme has been introduced to allow individual horse sponsorship in Point to Point Racing for the first time. Any Business may sponsor Point to Point horses (up to a maximum of 5 horses for any one business) although because Directorship details are in the public domain via Companies House it is recommended that a Director should not sponsor his/her own horse (although he/she may sponsor others).
HOW DOES IT WORK?
The sponsorship payment will be £450 which you will pay to the Owner of the horse and will be valid for one season. The Point to Point season runs from 30th November 2008 until 30th June 2009. The Owner will have to pay a registration fee to Weatherbys of £45. The Owner will:
•Register your agreed business name with Weatherbys (maximum of 45 characters including spaces) at the same time as the horses eligibility for Point to Pointing is registered (known as the Hunters Certificate).
•Weatherbys will send a letter of confirmation to the Owner confirming your business name has been registered as the appropriate horse sponsor. You should keep a copy of this letter and the Hunters Certificate so you can provide evidence if required.
•It is also important to understand that occasionally the horse you have sponsored may become injured and unable to race during the season. In this situation you will not receive the full benefit of promotion for your business although we would recommend the Owner enters the horse at least once. In this way you will obtain a small amount of promotion in a racecard.
•The sponsorship payment is NON REFUNDABLE.
HOW DO I ACCOUNT FOR THE PAYMENT?
•H M Revenue and Customs judges all sponsorship payment of this type on a case by case basis. We suggest you review HM Revenue and Customs Guidelines for sponsorship payments BIM42555 and BIM 42560 (available on www.hmrc.gov.uk/manuals)
•The following represents an extract from BIM42555 – Specific deductions: advertising, expenses, sponsorship.
•“Sponsorship is a way for businesses to obtain the commercial benefit of bringing their name, products of services to public attention.”
•“Sponsorship is often a form of advertising. A business tries to obtain benefits for it’s products, goodwill or reputation and public image by association with a popular or successful event or person”.
QUESTIONS AND ANSWERS?
17.What if I the horse I have sponsored is sold during the season?
1.The payment already made is not transferable. The marketing publicity will no longer be available.
17.What information should I keep?
1.We stress that HMR&C will judge each sponsorship on a case by case basis so the more information which is retained to provide evidence of activities to market and promote the business name which can be produced the better. We suggest as a minimum a copy of Hunters Certificate and Weatherbys letter confirming registration; a copy of an entry form (showing the business name as the horses sponsor); copies of as many racecards as possible where the horse has been entered.
17.How should I “sell” the scheme to a business?
1.Point out that the purpose of the scheme is to promote the business. Every time your horse is entered and runs in a Point to Point race the business name is being exposed
* (a) in the racecard and
* (b) optionally on the paddock rug both before and after the race.
Average numbers of people attending a point to point are 3,000 over the season. Depending on how many times the horse runs this represents very justifiable exposure for the amount involved.
This guideline does not represent accounting advice of any form whatsoever. If you are in any doubt regarding your participation in the above scheme, please refer to your accountants or financial advisor.
The directors of the PPA, the PPSA, the PPORA and the MFHA will not be held liable for any tax liability incurred as a direct result of participation in this scheme.
