Tax breaks for sponorship

With sponorship, I know companies can get tax brakes does anyone know anything about this and how it works?

Does the person being sponored have to have a company set up too?

I know very little about accouts stuff I could never understand it!

Amy pointers would be great, I have an idea that I want to togther, but I need to know how this works.

[Stu]

For a company to get a tax break, it would need to be a valid business expense. e.g. advertising for which the company is getting a benefit. i.e. the company must be getting some value from the advertising that it does. This would tend to suggest the the industry the company is in must have potential customers that will see the advertising on your bike, and you should be doing well in the races to put a positive light on the company.
Good luck.
I am not aware of any specific 'tax break' as such, it's just an expense deductible from taxable profits.

[Luckypants]

Originally Posted by bluethunder

Does the person being sponored have to have a company set up too?

NO

Thanks that helps, so I don't have to have a company which make things easier, a company can claim back the tax on anything they spend on advertsing.

I wasn't just thinking on the bike either, I was aiming a bit higher my idea is a bit more than that which will give a lot more expousre, though I need think about that a bit more, but the idea is sound is just how I do it, that I need think, about, giving that I spend a lot of time working stuff out I'm sure I will have something in my head to put togther quite soon.