EPOS system supplier to pubs & restaurants

EPOS system supplier to pubs & restaurants

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A director of a company selling electronic point of sale (EPOS) systems to the pub and restaurant trade often eats in restaurants to:

a) see how well a potential customer's current system is working and provide feedback; and

b) show how the company's EPOS system works at a current customer in an attempt to sell to potential customer.

Are these costs entertaining i.e. no tax relief or VAT recoverable?

The director understandably is contesting they are marketing costs and that modestly priced food & drink is ordered.

Presumably if claimed there is a danger of HMRC arguing duality of purpose.

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By Paul Soper
26th Sep 2013 22:49

Who benefits?

Entertaining is when  you provide such a service to another person, this is presumably not happening here, you cannot entertain yourself, well you can keep yourself entertained but that is another matter entirely... b) clearly falls under this heading though and so would be disallowable.

Is it subsistence? - equally no - as there is no specific disallownace it must come down to the normal wholly and exclusively rule, a) should be allowable.

That could be a basis to horsetrade on - allow a) but disallow b) - give it a go...

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