Reclaiming VAT on expenses

mexico53

Can anyone tell me the rules on reclaiming VAT on Business Meals. When a Director takes client out for food and drink. Are there different rule for alcohol, i was told that i should claim on the food but not the drink, not sure if this is the case

chattychappy

mexico53 wrote: »

Can anyone tell me the rules on reclaiming VAT on Business Meals. When a Director takes client out for food and drink. Are there different rule for alcohol, i was told that i should claim on the food but not the drink, not sure if this is the case

Probably outside the scope of this forum, but general rule is you can't claim VAT back on entertaining clients.

http://www.hmrc.gov.uk/vat/managing/reclaiming/entertainment.htm

Different rules apply for subsistence.. don't remember a particular exemption for alcohol but haven't looked further as your situation does sound like subsistence anyway.

http://www.hmrc.gov.uk/vat/managing/reclaiming/travel-subs.htm

Also bear in mind that just because you can't claim back the VAT doesn't mean you can't put it through the books and claim it as an expense from the company.