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Claiming entertaining?

Can writer take this as deduction, when it has been recharged to end client>

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A self-employed journalist recharges his client publications for expenditure on entertainment when interviewing for a piece. Am I right in still disallowing the expenditure? If this is the case, the consultant loses out because he will suffer tax on expenditure for which he cannot claim the relief. And HMRC would get a double-disallow...

Could I classify this as a cost of sale?
Are there any other thoughts on this?

 

Replies (8)

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RLI
By lionofludesch
02nd Nov 2017 14:40

Who is your client ?

The journalist ?

Or his customer ?

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Replying to lionofludesch:
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By RG
02nd Nov 2017 14:57

the journalist

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By johngroganjga
02nd Nov 2017 14:43

Assuming he is the journalist, and he recharges the entertaining as an identifiable disbursement, there should be no entertaining expenditure in his accounts to disallow.

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By Portia Nina Levin
02nd Nov 2017 15:12

No. Not unless, as John says, it is a disbursement. I expect though it is just a case of it being part of the calculation for the overall single supply.

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By RG
02nd Nov 2017 15:23

It is actually an identifiable disbursement to the client, so it sounds as though it is allowable.

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Replying to RG:
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By andy.partridge
02nd Nov 2017 16:14

You didn't use the word 'disbursement' in your question. Do you know what it means? If you were sure you wouldn't say it 'sounds' as though it is allowable.

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Replying to RG:
By johngroganjga
02nd Nov 2017 16:24

It's not allowable - it's a nothing, because it's not there to disallow.

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By Briar
03rd Nov 2017 16:29

All very well to treat it as a disbursement (or income and expense netted off to nil). But one wonders what is on your client's invoice and therefore how your client's publication treats the "expense"?

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