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Are meals as research allowable ?

Are meals as research allowable ?

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.

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25th Feb 2016 11:34

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"?

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25th Feb 2016 11:59

BIK and Volunteers

Thanks, yes I wondered about the BIK, but decided it was non-taxable, so just waiting for the new P11D arrangements.

Volunteers were not related. Yes, excellent, volunteer feedback, quid pro quo.

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