A client has been told by a friend that the one off 10 year licence fee (£5,600 per seat) and annual season ticket (£2,000 p.a per seat) should be tax deductable and vat can be reclaimed.
Apprently the friends company have bought 4 tickets for clients and staff use.
Is his friend correct in whole or in part ?
MB
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VAT *may* be reclaimable....
VAT can be reclaimed if you can convince HM Revenue & Customs that it has been incurred for a business purpose. Even then, any part that relates to business entertaining (entertaining anyone who is not an employee) cannot be recovered.
In practice this means that you must estimate how much the expense is going to be used to motivate and reward employees and recover only that proportion.
Regards
Paul Taylor
VATease - VAT Advice