One of my clients has a significant amount of entertaining expenses for a director. This is not unusual for him however a number of these expenses are for trips, accommdation and meals eg while visiting racecourses in which one of his privately owned horses are running.
I'm fairly sure there's an issue here and believe I've read it in some HMRC guidance but I can't seem to find the reference to it on their website.
Anyone have any experience of this or know the relevant guidance reference please?
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I think the Interfish case will help you. The UKUT ruling is at http://taxandchancery_ut.decisions.tribunals.gov.uk/Documents/decisions/...
There's also stacks of commentary on it.
I assume you are asking about what BIK implications there are for the director, but your question is not clear. Can you clarify what you believe the issue is?
Then the marginal expense of his being there to watch/show off his horse is a BIK. I suspect the costs would have been no more and no less though.
The decision in Rockall may be relevant. It might not, but it is pure entertainment.
http://www.bailii.org/uk/cases/UKFTT/TC/2014/TC03767.html
You could also have a read of Chepstow Plant, but even though it concerns race horses, it is probably less relevant, and its far less entertaining.