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Entertainment Deductions in a Ltd Company
gibbyni
Posts: 335 Forumite
Can anyone point me in the rite direction, Im looking for clarification on what can and cant be charged to our business for staff entertainment. All I have been able to find only relates to VAT ( Only 2 Directors no employees so it says VAT cant be claimed).
Basically we want to know if we can put a trip to a football match with hospitality down as an expense.
thanks
Basically we want to know if we can put a trip to a football match with hospitality down as an expense.
thanks
0
Comments
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I know there are (or used to be) rules about Christmas parties, which presumably this is an alternative to.
You could try phoning HMRC and asking where to find the information. I'm not on my regular 'puter so it's difficult for me to trawl the HMRC site.Signature removed for peace of mind0 -
Yes you can if you are taking clients to the match but a Savvy_Sue says, there are rules. HMRC are not usualy happy with more staff than clients attending these types of functions. If it is just staff attending then I think you will find that it will be viewed as a benefit in kind.Can anyone point me in the rite direction, Im looking for clarification on what can and cant be charged to our business for staff entertainment. All I have been able to find only relates to VAT ( Only 2 Directors no employees so it says VAT cant be claimed).
Basically we want to know if we can put a trip to a football match with hospitality down as an expense.
thanks
We have amny arguments with HMRC with regard to corporate season tickets etc.
A quick chat with your accountant should sort this.Always get a Qualified opinion - My qualifications are that I am OLD and GRUMPY:p:p0 -
There is a maximum of £150 per member of staff that you can spend which the company can claim tax relief on.0
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To clear things up
You can put what ever you want as an expense in the accounts however, for tax purposes, business entertainment is not an allowable deduction. This means that what ever you spend on entertaining will not reduce your taxable profits including football match tickets.
Regarding staff entertaining, you can spend as much as you like on this and it will all be allowable for tax purposes and will reduce your taxable profits. If you do spend more than £150 per employee then the employee will have a benefit in kind arising which they would have to pay tax on unless a PSA is used.0 -
Seriously, is business in the UK so anal these days that we are reduced to worrying about the cost of a few hundred quid on something like this ?
Not sure how the tax man knows how many people went if you don't tell him, in the slim chance he asks to look at the accounts anyway.0
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