Directors' meals | AccountingWEB

Directors' meals

I have a valued client who is a one man band consultant with his wife on the board and on the share register.  It's a profitable company.
They've spent just over £1k in the year on meals in restaurants within 5 miles of their home, which they say was mostly "after seeing potential customers".
I've sent them the key rules on business entertaining, pointing out that it is all disallowable unless it falls within one of the stated exceptions.  I've pointed out that all entertaining of UK customers is disallowable and that although staff entertaining is allowable, in a close company meals where only the directors are present do not qualify as staff entertaining.
I've now been challenged on this treatment 4 times, it looks like they are not backing down on it.  They say they have friends who do the same thing, I believe this is true as various local "accountants" book this stuff as travel and subsistence.
It's a £200 saving on a £7k tax bill, so in that sense not material.  Do I threaten to resign over this issue?  What would others do?


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firm but friendly

Lancsboy2 |

I know how you feel

Moonbeam |
Moonbeam's picture

Reverse the logic

ShirleyM |
ShirleyM's picture

Send them a copy of the new

uktaxpal |

Do you need this client?

Kent accountant |
Kent accountant's picture


daveforbes |
daveforbes's picture

It's an allowable CT deduction

George Attazder |
George Attazder's picture

Company secretary

dialm4accounts |
dialm4accounts's picture


mr. mischief |
mr. mischief's picture

Disallowable company expense

bukkuz |


blok |
blok's picture