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Entertainment

Hello

Could anyone clarify how to account for catering costs incurred at the opening of new offices. All staff were invited and a handful of suppliers were also invited. This was a one off celebration.

Is this classed as business entertainment?

Many thanks

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03rd Aug 2012 09:55

Staff entertaining is allowed as a tax deduction if it is wholly and  exclusively for the business. The related VAT can be reclaimed as input VAT. 

As some suppliers were invited, I suppose the strict answer would be to apportion for CT and VAT recovery purposes. 

This is a starting response - I will wait for the tax experts to contribute!

SA

 

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