If a company is holding a staff training/bonding/teambuilding day or whatever you like to call it, and pays the entry price for employees to attend a race course, does this include VAT and can it be reclaimed?
Thanks in advance.
JD Fortune
Replies (4)
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Most are VATregistered
si i think they include VAT, and yes you can reclaim VAT on staff stuff generally, but bonding on the rails seems a little suspect
Yes.
If you feel you can convince customs that there was a genuine business purpose in incuring the expenditure then you are entitled to recover the VAT on it.
However, as suggested by the previous answer, I think HMRC would take a little convincing with this sort of cost.
Regards
Paul Taylor
Dains
01283 507960
team building
I disagree - putting aside any potential income tax implications of "staff entertainment" - then the VAT is worth claiming - it's legitimate BUT if challenged on a subsequent visit - take the decision (and the possible disallowance)then.
This is staff entertaining and as such,
the VAT is reclaimable in full. It would be an entirely different matter if you were entertaining customers.