Question about racing

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bmwbadboy

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I'm planning to join Bemsee at some point this or next year.

Considering they do accept me (very optimistic) and I'm doing reasonably well in races, do you think it makes sense setting up Ltd company to handle supplies/maintenance of motorcycle ?
Surely I would need to buy few bits of equipment and change oil/tires regularly.
 
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Guess it keeps all your monies separate from your personal stuff... got it's drawbacks too... separate set of accounts and accountants fees, returns to revenue etc... are you self employed just now ?...

I'd have a chat with a local accountant if you don't have one..

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what do you see as a benefit or reason for doing it? have you looked into costs for racing,most clubs do induction days (usually at start of season though) to go through what you'd expect to need on a race weekend.neverheard of anyone else doing this,even self sponsoring (if you have your own company) is a minefield and get you in trouble with HMRC if your not carefull.
 
Its likely going to cost near to ?1000 a year to run a basic ltd with MTD compliance, accountancy fees for YE and tax returns, ignoring the time for the OP to keep on top of the figures. Unless you are going to be a) making a profit from winnings to put against costs and reduce the tax bill, or b) spending ?5000 a year on VATable items where the VAT can be reclaimed it makes no sense at all to set up a ltd for racing a bike.

As has also been mentioned, HMRC may want to take a good look at it and may decide that everything is BIK so you'd end up paying income tax on the costs claimed.
 
Racing

For club level racing I personally wouldn't even bother going through all the hassle. All you really need to know is that racing is expensive! Just be aware that securing sponsorship at club level is extremely difficult; especially if you can?t fully commit to an entire season and have no prior experience or race results. Bemsee, and the ACU, do offer discounts to members and race licence holders to help offset the costs of kit, consumables and insurance which is useful. As already mentioned you may want to attend an induction weekend as that will give you some idea of the costs involved. Ultimately, you will need to realistically budget for the number of rounds you intend to compete in. That and don?t forget to factor in crash damage and repairs as that can easily wipe out whatever monies you have set aside for the season if you have a big off.
 
@monners is racing with NLR and @bananaman was racing in Bemsee a couple of years ago.

They may be able to give indicative costs.

- Alex
 
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I'm planning to join Bemsee at some point this or next year.

Considering they do accept me (very optimistic) and I'm doing reasonably well in races, do you think it makes sense setting up Ltd company to handle supplies/maintenance of motorcycle ?
Surely I would need to buy few bits of equipment and change oil/tires regularly.
Do you run/own your own company? If so, your accountant might be able to set all the bills against sponsorship/advertising. This was the case back in the 80's/90's . I would check with your accountant. As previously mentioned Racing is very expensive and very addictive.
I have (thankfully) managed to resist the urge to Race (Bikes), if you decide to go for it may I wish you all the luck in the world (you might need it).
 
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