My client has a day job in which he earns c£75k.
He also writes text books as a separate exercise (but on a subject relevant to his employment) and now has income of c£20k per annum from this. Last year we claimed the £1000 trading allowance against this income as his actual costs are not high, and will do so again this year.
During the tax year, one of his books was launched and he received c £1500 in "sponsorship" including £500 from his employer. The other sponsors were the publisher and a couple of other businesses relevant to the subject of the book. Most of the funds were used to pay for the cost of the book launch, which was at a restaurant, so most of the costs would be entertaining. He spent about £300 less than he received.
I would be very interested to hear if you think this £1500 should be included as income for the year. As we are claiming the trading allowance, we can't then claim any of the actual costs incurred (although most costs would be entertaining in any case).
I dont believe the sponsors received a significant amount of advertising in return for their contributions.
I am submitting this question not because I don't have a clue. I have had a look at this point and drawn my own conclusions, but so little in tax is black and white and I really do appreciate the thoughts of others on some of these greyer areas in case someone brings up a point which I might have missed. Those amongst you who are sole practitioners and can't pop into the office next door to bounce ideas around with a colleague will understand where I am coming from.
In case anyone thinks I am being rude (see previous post where I was ticked off for not saying please), thank you most graciously for your attention and consideration.