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Allowable Expenses Night Club Event Promoters

Allowable Expenses Night Club Event Promoters

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Client is a night club event promoter and they hire out a venue for an evening.

They book & pay for DJs, equipment, drinks for DJs, door staff, etc.

Are the staff/DJ drinks allowable as a business expense? If so how should they be accounted for in the books of account?

Thanks.

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Accountants Northampton
By Shamrock
19th Jun 2015 10:01

Alcoholic?
That would depend on the nature of the drink as alcoholic beverages are only tax deductible when served with a meal.

I would enter the cost under 'staff welfare and training' or 'travel & subsistence'.

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By msmcr
19th Jun 2015 11:37

Alcoholic?

Shamrock wrote:
That would depend on the nature of the drink as alcoholic beverages are only tax deductible when served with a meal. I would enter the cost under 'staff welfare and training' or 'travel & subsistence'.

It's a mixture of alcoholic and non alcoholic.  Neither are served with meals. 

So if they account for costs for all drinks under staff welfare & training or travel & subsistence only the non alcoholic element is tax deductible. So they would need to be specific in detail entered to be able to break this down at year end reporting for tax purposes. Have I understood you correctly? 

 

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By msmcr
19th Jun 2015 17:59

Alcoholic?

It's a mixture of alcoholic and non alcoholic.  Neither are served with meals. 

So if they account for costs for all drinks under staff welfare & training or travel & subsistence only the non alcoholic element is tax deductible. So they would need to be specific in detail entered to be able to break this down at year end reporting for tax purposes. Have I understood you correctly? 

 

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Accountants Northampton
By Shamrock
20th Jun 2015 00:12

Thats Right
It should be straightforward to separate it out from the receipts.

But I would code the alcoholic element to 'Entertaining 0% Allowable' to keep things transparent.

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