Entertaining costs recharged to clients

My client pays for a lot of entertaining and gifts on behalf of a customer. These costs are recharged to the customer. Am I right in thinking that the reimbursed expenses (ie entertaining recharged) is income of the company but the costs of entertaining are disallowable in the tax computation. This means that my client loses out by 20% of the costs. (The client is a limited company)

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No

BKD |
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But surely......

nigelburge |
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The words that I read were ...

BKD |
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Agree with BKD

cathygrimmer |
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I don't necessarily agree with BKD

George Attazder |
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Nonsensical or not ...

BKD |
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No, no, no...

George Attazder |
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thanks

Karen Sayers |

Flat Rate ?

lionofludesch |
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