Family run haulage business with 20 employees including the two adult children of the husband & wife directors.
The four family members are the company's only admin staff. All the other employees are drivers and mechanics. The children still live at home with their parents.
The four family members went out for an expensive meal at a top hotel and are claiming this was solely for the purpose of holding a strategic management meeting away from the office premises to ensure privacy in discussing the future management of the business. The company has had a very sucessful year and the parents chose the venue to reflect the success of the past year and as a suitable venue at which to announce significant financial bonuses for the children.
Can the cost of this meal be claimed as a tax deductible business expense and the VAT reclaimed ?