dissallowable expenses

dissallowable expenses

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We have a corporate day that we organise and most of the entertaining expenses can be classes as dissalowable (drinks/food etc) howeveer would the cost of a BBQ chef and a catering manager which are directly related to food/drink be also dissallowable??

Regards
neelam amin

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By AnonymousUser
06th Jul 2005 15:53

It's all entertaining...
... and disallowable under s577 ICTA 1988, irrespective of the purpose of the occasion. Entertaining includes hospitality of any kind and clearly the cost of the chef and catering manager are part of the entertaining costs. The only exception is where the entertaining consists of something which it is the company's trade to provide e.g. a wine merchant providing wine tastings.

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By neileg
30th Jun 2005 14:37

Two things
The chef and manager are part of the costs of providing the food and drink so I don't think you can treat them differently.

However, are you sure that the food and drink represents entertaining? If your 'corporate day' is more than just a bit of fun for your customers, perhaps a seminar or a product update, then the food and drink may be incidental to this activity. But if the day is about golf and clay pigeon shooting, then the whole lot would be entertaining, not just the food and drink.

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