Sponsorship is an allowable expense for tax purposes provided it is incurred ‘wholly and exclusively for the purpose of the business. It may be disallowed where
- The main beneficiary of the funds provided is a relative of the sponsor
- The sponsor is involved with the beneficiary
- Where the sponsor cannot be seen to receive any benefit from the payment
Medical and Dental costs
These are not allowed for tax purposes under general principles however if it can be proved that the cost was necessary for the business (as opposed to personal wellbeing) the costs may be allowed (see Parsons v HMRC).