Enetrtaining recharged to customer

Enetrtaining recharged to customer

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Client is self employed consultant in the field of product design/development, setting up supply chain for manufacture and marketing.  Just doing the first year accounts and there are a couple of things on which I would appreciate some other opinions.

  1. Each month client bills his clients for days spent working on their projects and also agreed expenses.  The expenses re-charged are always actual costs specified in detail including air and train fares, hotel bills etc.  Occasionally they will include working lunches which would normally be disallowed as entertaining.  Does the fact that these expenses are re-charged to a UK company obviate the need to disallow them?  They would otherwise be disallowed in both my client's tax return and the company's CT600.
  2. The client operates from home which is a flat where the accommodation, except for bathroom and bedrooms, is open plan.  He has set up a separate area as his office.  He has bought office furniture (storage units; desk; chair) which I am happy for him to claim have negligible personal use but also wants to claim for window blinds and curtains.  I feel I will need to convince him that these will have substantial or overwhelming personal use but client claims he mostly needs them during the working day to keep direct sunlight off the computer screen. Any thoughts appreciated.

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Portia profile image
By Portia Nina Levin
25th Apr 2015 13:54

(No subject)

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Woolpit Gus
By nutwood
10th Jul 2014 13:58

Thanks @Portia Nina Levin

Client not VAT registered so not an issue, but as stated in OP re-chargeable items are billed separately, at cost, with detailed schedule in support.

re blinds - I didn't suppose they would be anything other than capital so it was the acceptable level of personal use I was uncertain of.  Your suggestion is the opposite end of the spectrum to where I would have thought to start suggesting to client would be acceptable -so your response will save him a few hundred in tax.

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Portia profile image
By Portia Nina Levin
25th Apr 2015 13:53

(No subject)

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