Company services are Events Management. Not VAT registered.
1. Director visits various restaurants to assess suitability for clients.
2. On some visits is accompanied by other volunteers for the same purpose.
Have read the following which isn't quite on the subject, but there is some comfort here:
http://www.hmrc.gov.uk/manuals/bimmanual/bim45045.htm
To be disallowed it would need to be clearly identified as Entertaining, as distinct from Subsistence, Marketing, Research and 'working lunches'.
Is the expense allowed for Corporation Tax?
Thanks.
Replies (2)
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Yes. It is allowable for corporation tax. There is no entertaining element if there is genuine quid pro quo, which you suggest. See http://www.hmrc.gov.uk/manuals/bimmanual/BIM45014.htm
The director is likely to suffer a benefit though as getting fed nice nosh is more than just incidental.
Out of interest, is there any relationship between the director and the "other volunteers"?