advice on expenses

[8Abs]

Hi All

I run a fitness and sports therapy company; last year I set up a cycling club/team that is part of my business, the kit and club name carries my company name and I use it to enable my clients to get fitter through cycling. I participate myself coaching and supporting my clients through fitness and the sports therapy side. Having the cycle club generates interest, profile and help bring in new clients while retaining current clients.

I get my clients and myself to enter events throughout the year, this give my company a good advertising potential as they are all wearing my kit which displays my company name.

My question is whether if I can include the expense of entering such events, if I can include can I include the cost of all my riders or is just my own costs of entering the event. I'm guessing that I could place the costs in my advertising budget.

 

[Diamond Bookkeepers]

Is the business paying for your clients to take part in the events? or do your clients pay for it themselves?

 

[8Abs]

if i was able to claim on expenses I would pay for it through my business for my clients or agree with my clients a part payment towards the events, obviously I have to pay for my own entry to these events in full. I'm a sole trader if that makes a difference

 

[Diamond Bookkeepers]

If you increased the price you charged your customer, and included entry to the event as an additional service, then you can claim the event entry fee as a cost of sale.

 

[Diamond Bookkeepers]

Assuming you have enough people, you probably get a discount for purchasing bulk entries

 

[8Abs]

If you increased the price you charged your customer, and included entry to the event as an additional service, then you can claim the event entry fee as a cost of sale.

the events are not run by me, they are run by a separate companies that is not associated with my business so not sure how I can charge for this. I had thought about your suggestion but people wouldn't join my club if membership was around £500 per year, also certain clients only enter certain events throughout the year.

yes entering in bulk can sometimes get a discount rate but I'm looking at how I can incorporate the costs within my business

thanks for all advice I understand this may be a confusing question to deal with, just trying understand it myself.

to simplify it somewhat, can I just put my own entry fee down as an expense, would this be as advertising costs or something else

 

[Diamond Bookkeepers]

You are offering your clients an additional service. So the money you receive from them is income and the payment you make to the organiser is an expense.

• An event is organised by a third party organiser
• You find out how many of your clients are interested
• The organiser will give you a quote for the entry fees
• You invoice your clients for the money
• The money you pay the organiser is therefore an expense.

 

[8Abs]

You are offering your clients an additional service. So the money you receive from them is income and the payment you make to the organiser is an expense.

• An event is organised by a third party organiser
• You find out how many of your clients are interested
• The organiser will give you a quote for the entry fees
• You invoice your clients for the money
• The money you pay the organiser is therefore an expense.

thanks that does make sense

what if I didn't invoice my clients for cost and just paid the expense myself?

I'm just trying to find and cover all the best solutions, there are some events that I would be happy to cover the costs and some I would want covered by my clients, obviously if my clients are paying I would put that through as sales, but if I pay the whole cost what would I put that under as it wouldn't be a sale

thanks Diamond this is much appricated

 

[Diamond Bookkeepers]

Even if you don't invoice your clients for the money, the expenses are valid business expenses as your intention is to promote your business/brand.