Allowable expenses

[trickywoo]

I could ask my accountant but you guys may be able to help.

Could I put Brands Hatch tickets through on the annual entertainment allowance?

If I understand correctly up to £150 a year per director / employee plus another £150 each re partners is allowed to be offset against corp tax and also the VAT reclaimed for regular annual events.

Thanks.

[Marcellus]

Watching..... but other than yourself who are you entertaining?

If supplier or customer then I’d have thought you’re ok but if just you and a mate then on a dodgy wicket.

Whether your accountant and/or HMRC would spot it is another question.

[Eric Mc]

Entertaining is allowed on a restricted basis (very restricted) as an allowable business expense when it relates to staff.

The entertaining of directors, shareholders, partners or sole traders is never allowed for tax purpses.

[trickywoo]

It’s the annual Christmas do.

I appreciate entertaining is viewed differently but am asking the question as from my point of view £150 spent on Christmas lunch is the same as a day out at brands.

I don’t expect to be able to write off more than this annually on entertainnng.

It’ll be me and a partner in this case and from what I’ve researched £300 should be allowable annually - write off on Corp tax and vat.

[williaa68]

Eric - can I just clarify this, please? If my wife and I take a client and his wife to the opera I am assuming all of the expense is allowable, not just the bit that relates to the clients? Thanks, as always.

[trickywoo]

williaa68 said:

Eric - can I just clarify this, please? If my wife and I take a client and his wife to the opera I am assuming all of the expense is allowable, not just the bit that relates to the clients? Thanks, as always.

I don’t think it is. The bit relating to the employee / director isn’t allowable. There is still the £150 annual amount which I think is pretty much fair game.

Be interesting to hear confirmation either way.

[bigandclever]

£150 inclusive of vat per head, can’t be a penny more.

I *think* that hmrc use ‘annual’ to mean it happens once a year on a recurring basis - hence most might use it for a Xmas party. I wonder if they’d question a one-off event, as this reads? It’s an exemption, after all, not an allowance.

[Eric Mc]

williaa68 said:

Eric - can I just clarify this, please? If my wife and I take a client and his wife to the opera I am assuming all of the expense is allowable, not just the bit that relates to the clients? Thanks, as always.

None of it is allowable.