Ideally, you should ensure that you have a written sponsorship agreement in place that details the sponsorship’s value, duration and expected return on investment.
The return on investment doesn’t necessarily have to be monetary. It can be about wider benefits, such as greater brand awareness or increased website traffic. We would advise to include a termination clause if you don’t see any returns and be sure to keep your paperwork up to date in case HMRC ask for proof.