Charity sponsorship payments are different from donations because your company gets something related to your business in return. Typically, your business brand would be promoted by the charity in some way.
You can deduct sponsorship payments from your business profits before you pay tax by treating them as business expenses.
Payments qualify as business expenses if the charity:
• officially supports your products or services,
• allows you to use their logo in your own printed material,
• allows you to sell your goods or services at their event or premises,
• links from their website to yours.
If you are unsure whether a charity payment qualifies as a sponsorship payment or a donation, contact the HMRC charities helpline, 0300 123 1073.