Ancillary costs of business entertainment

Ancillary costs of business entertainment

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By this I mean travel, mileage claims, parking and accommodation associated with staff attending business entertainment events.

We tend to add back all such ancillary costs for tax purposes, regardless of whether we are the hosts or the beneficiaries of the entertainment.

I am fairly sure this is the correct treatment where we are the hosts but are we being overly cautious in the other situation?

As a legal firm a lot of our entertainment is conducted with agents and solicitors with whom we work on a reciprocal basis so it is not always obvious (at least to the Accounts Department!) as to who is ultimately going to pick up the tab. Moreover sometimes the costs are split, eg one party pays for the meal, the other for the drinks. What do we do then?

Paul Michael Moroney

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By User deleted
29th Jun 2007 12:16

Paul
I am sorry that you have had to wait so long for a reply to this one, but I thought it was such a good question that I asked Rebecca Benneyworth for an indepth consideration of the points raised.

Here is her Entertaining round-up

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