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Christmas Party for CIS subcontractors - entertaining employees or suppliers?

Hi and thank you in advance for any answers,

My client employs CIS subcontractors and is throwing a Christmas party.  Are the expenses allowable as staff entertainment or disallowed as supplier entertainment?


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By DMGbus
05th Dec 2012 13:28

Entertaining (not staff)

The subcontractors are NOT employees (unless adjudged to be so after HMRC investigation, for example for being regarded as "part and parcel of the organisation" - ie. treating them like employees in all respects except employment taxes).    Some in the construction industry even provide, free of charge, vans to their "subcontractors" who are claimed not to be "employees", then there are those who invite them to the staff Christmas party.

So, in my view, it is a non-allowable expense of entertaining suppliers - unless an employer (engager) wishes to push their luck with regard to status issue.




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By Luke
05th Dec 2012 14:40

Agree - you can't have it both ways
You can't call them subcontractors then expect to include them in an employee party without expecting serious questions re status.

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05th Dec 2012 14:59

Many thanks.

Many thanks.


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