Quote:
Originally Posted by Angel
Many businesses are 'zero-rated', meaning at the end of the year they haven't made a profit
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No. Being "zero rated" means that you haven't reached the turnover threshold to be registered for VAT.
DC has valid points. It's more claiming back cost of sponsorship than expenses. You can legally claim back VAT on the cost of such items as fuel and subsistence if you have employees who are out on the road - whether HMRC would view sponsored and semi-sponsored drivers as "employees" when they are at a race meeting is something you would have to discus with them. If they are promoting your business you would have a strong point, but then again HMRC would want to know whether you are paying the drivers a wage, or they are receiving "benefits" from you.
Would lead to a whole myriad of questions and probably cost you more in time and effort than you would ever reclaim in VAT........and yes - I'm a sad accountant too...........