Advice needed for my rally team.
I am currently progressing through the rally ranks and hoping to compete in the British Rally Championship next year, to make this possible I have to gather sponsorship funds from companies to be able to compete in the British Championship. I was told that this is a form of income and that I need to declare this for Tax? is this correct? what would be the best way for me to do this?
Also would I be able to set up my rally team as a company, and then the sponsorship would be the income to the company then the costs of competing of the rallies would then be taken out of this as outgoings. Then I would create a monthly spread sheet and profit and loss. Would that be ok to do?
thanks for the responses in advance.
I am currently progressing through the rally ranks and hoping to compete in the British Rally Championship next year, to make this possible I have to gather sponsorship funds from companies to be able to compete in the British Championship. I was told that this is a form of income and that I need to declare this for Tax? is this correct? what would be the best way for me to do this?
Also would I be able to set up my rally team as a company, and then the sponsorship would be the income to the company then the costs of competing of the rallies would then be taken out of this as outgoings. Then I would create a monthly spread sheet and profit and loss. Would that be ok to do?
thanks for the responses in advance.