In the process of developing a new product a director has had meetings with a number of people from a range of companies to find out about their business processes. This is for market research to ensure that the product we are developing meet the needs of the market.
For some of these meetings the logistics mean he takes the person for a modest meal as the best place to meet (cheaper than hiring a room). For some of these trips, he is away from home and his part of the meal is subsistence and hence deductible. But what about the other person's? It is not what I would call entertaining as we are not touting for their business, it is just a means of finding a suitable and convenient place to meet. It is entirely for business reasons.
How should it be treated in the accounts for VAT and tax and are there any personal tax implications.
Thank you in advance.