can or should my clients reclaim VAT

arranging events for launch of a new consumer brand

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my clients have an annual retainer with a public company for say £100k  this is billed with VAT , part of their responsibilities is to arrange events supplying food and drink events the attendees are members of the press and other influencers,  my client receives and pays the bill say £50k and we reclaim VAT on this. The question is this correct or should VAT not be reclaimed?

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chips_at_mattersey
By Les Howard
13th Aug 2018 11:38

Your client pays £50k for supplies of catering. He re-charges it, along with other supplies, for £100k. These are supplies in the course of his business, and input tax is deductible on the purchase; output tax is accounted for on the sale.
If you are concerned about the business entertainment rule, then that does not arise, since the hospitality is being paid for.

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RLI
By lionofludesch
13th Aug 2018 12:05

If you're selling this service, you're not entertaining.

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By carnmores
13th Aug 2018 18:03

thanks guys that was my understanding just wanted a road check, on a related point the company generally entertains journalists for its clients on a similar basis , the employees are required to do this should something be reported on P11d

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