VAT on entertaining now allowable?

VAT on entertaining now allowable?

Didn't find your answer?

Here's the article on the Telegraph website:

http://www.telegraph.co.uk/finance/4700345/Tax-man-to-pick-up-tab-for-years-of-corporate-jollies.html

Anyone here shed any light?

Cheers

Hany
Hany Mustapha

Replies (7)

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By AnonymousUser
16th Mar 2009 17:35

Surprised....
that this thread ended without a clear answer, as it must affect us all:

Is business entertainment now claimable and so we should all be putting in a claim for the last 3 years? My electronic up to date copy of Tolleys does not mention this at all.

The 31/3/09 deadline stated in the BDO link - is that only for claims relating to the period up to 30/4/97?

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By User deleted
23rd Feb 2009 16:28

VAT on foreign entertaining
Are they referring to the Danfoss case, which seems to relate entirely to hospitality on the company's premises or is there another EU decision relating to foreign entertaining?

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By martinfoley07
20th Feb 2009 14:22

this is a newspaper.....
....story.
So no surprise it gives a skewed account of what is happening.
(editing gives a slant to Marc's views which imply a lot more good news than is justified for typical small UK business)

Unfortunately I cannot provide links, but all the major firms have put out bulletins and articles.
(There is some confusion as there are three interlinked VAT things happening at the same time).

But to cut to the chase for small business ;
1. does this mean that clients now have carte blanche to recover VAT on all entertaining? Unhappily no !!!
2. but reclaim in certain limited circs which previously would have been regarded as irrecoverable is likely.

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By h4nym
20th Feb 2009 13:22

I'm more concerned with going forward
I'm more with Chris, I suspect - are we now in a silly position where we can reclaim the VAT, but not charge the net cost against taxable profits?

Hmmm

On the historic, the BDO article suggests that receipts aren't required - they can do it with estimates... now that could be interesting!

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By AnonymousUser
20th Feb 2009 11:46

What is required to make a claim + how

is one required to have receipts avaialble going back to year dot....to support the claim
ie find a 1996 receipt for a peice of client entertaineemnt where no vat was recovered ?

presumably one would need to schedule out all "expendtiures" + locate copy invocie/receipt......[long listings ] + .calculate the vat AND CLAIM ?

what is the procedure then for this summary.....where do you send this claim to HMRC where... and/or is there a special form which we have to complete as well

work with a SME who has a fair bit of uk non staff entertainment classified costs [ no vat claimed and no corp tax benefit, so anything back is a bonus ! ]

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By User deleted
20th Feb 2009 10:25

another link
BDO have a page on this here http://info.bdo.co.uk/ve/6390Ta826184xmeV6/VT=0/page=1

...which tells a bit more.

Is it safe now to claim VAT on entertaining going forward?

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By AnonymousUser
20th Feb 2009 09:15

Thanks for the link.
Looking forward to seeing any light shed, but in the meantime, can anyone comment on why this would not be subject to a 3-year cap? The article refers to going back 12 years.

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