Directors Subsistence

Directors Subsistence

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I have a company client where the Directors live and work in the same town. Sometimes, after a day's work they have a meal out rather than returning home. Are these costs allowable?

I have my own opinion, but am not certain as, when an employee of another practice, we had a client who on travelling home about 20 miles used to stop off at pub restaurants for meals, and I was instructed to allow the meal but disallow the wine. (This was a partnership if it makes any difference)

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By duncanedwards
27th Jul 2014 22:05

Presume you mean for tax?
How are the costs in either case for business purposes either in a general sense or a tax one?

I assume in the corporate case, the company has a deduction and the directors have a benefit in kind. How is the dinner paid for? Company credit card?

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By Alan 3969
28th Jul 2014 11:49

That is the issue - I do not believe in either case that there is a business purpose, they are choosing to eat out rather than return home.

Yes, payments in corporate case are by company credit card. I am thinking either BiK or directors need to repay company.

Trouble is, previous accountants appear to have allowed costs in full.

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By KH
28th Jul 2014 13:04

Strange

If the meal was deemed to be an allowable expense for tax purposes, then half a bottle of wine per person would also be a totally allowable expense ... but maybe the guy was drinking three bottles of wine before getting up sufficient courage to return home!... in which case, not allowable.

Personally I wouldn't allow any meals in your local town (unless the size of London, and you're living at one end whilst the "business" meal was at the other end, geographically speaking). But then I'm very old school.......

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