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Client wants tax deduction for skydiving payment

Client paid for skydiving then individuals raise money for charity

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Our client (who is quite adamant that this should be tax deductible) has paid a sky diving company for 8 tandem skydives.  Not all of these are for employees.  He believes he should get VAT and a CT deduction for it, I have said it is not a business expenses (they are couriers) or staff entertainment, it's not a donation as he hasn't made a payment to the charity, so he can have neither deduction - he is very unhappy about this but I can't see any way that it would qualify as there's not even any advertising!!

Does anyone know of any similar cases that I can show him to prove that what I'm saying is correct?  

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By The Dullard
22nd Oct 2019 10:33

To the extent that the expense relates to employees it's deductible. They, after all, will have a benefit in kind, whether or not a deduction is claimed. Who are the non-employees (are they friends or family of employees, for example)?

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Replying to The Dullard:
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By mrshamilton
22nd Oct 2019 10:58

Thank you for your input, it's the director's children, some employees and some subcontractors

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Replying to mrshamilton:
Lone Wolf
By Lone_Wolf
22nd Oct 2019 11:13

In that case, I'd allow the employees on the basis that it's staff entertaining.

I'd also allow the director's and his children's on the same basis.

The staff will have a P11D benefit for their portion, and the director will have one for his and his children's element.

They could of course look at getting a PSA for this.

The element relating to subcontractors is not allowed.

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By Accountant A
22nd Oct 2019 11:32

mrshamilton wrote:

I have said it is not a business expenses (they are couriers) or staff entertainment,

Not staff entertainment?? What is it then, part of the disciplinary process?!

Maybe it's a redundancy programme? 5 of you get chucked out of a plane; 4 have parachutes.

Thanks (5)
Hallerud at Easter
By DJKL
22nd Oct 2019 11:23

Right creative thinking needed.

The firm, being couriers,have been trialing the new deluxe express delivery service they intend to offer, staff will deliver most urgent letters and packages by jumping from the company jet (next purchase) whilst overflying the intended destination- this will make express delivery really express delivery and stand them out from the competition- obviously staff training (cannot wait to read the reported FT case)

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Replying to DJKL:
Lone Wolf
By Lone_Wolf
22nd Oct 2019 11:34

I'd amend your post before Amazon get any ideas. You'll have poor buggers barely on minimum wage dropping all over the place in the not to distant future if they catch wind of this.

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Replying to Lone_Wolf:
Hallerud at Easter
By DJKL
22nd Oct 2019 11:53

At one point we were going to be getting the Amazon stuff from their depot up near Dunfermline by drone, said drones zooming over the Forth and across North Edinburgh. Now if you have all seen Trainspotting you get a sort of view of parts of North Edinburgh (though vastly improved now from Irvine's day) , but as soon as I heard about it I pictured a group of modern day Begbies , Spuds , Rentons and Sickboys up on the roofs of the blocks down there with air rifle, like a city grouse shoot- I really wonder what percentage of deliveries would have got through..

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Replying to Lone_Wolf:
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By Open all hours
23rd Oct 2019 11:55

Beat me to it. I was heading for ‘training’ expense on the P&L.

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Replying to DJKL:
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By Richard Grant
22nd Oct 2019 11:43

Good idea, they could say they were refining the process and claim for R&D expenditure. "activities with the aim of obtaining new knowledge" should cover it.

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Replying to Richard Grant:
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By Tax Dragon
22nd Oct 2019 11:49

New knowledge? Wasn't it a 17th century apple that discovered gravity?

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Replying to Tax Dragon:
Lone Wolf
By Lone_Wolf
22nd Oct 2019 13:29

'twas, but that Newton fellow took all the credit for it.

Have to wonder about the general intelligence of our ancestors that it took until the 17th century to discover that things fall.

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Replying to Lone_Wolf:
Hallerud at Easter
By DJKL
22nd Oct 2019 14:30

Not really- until they got colour film the world was black and white (something I, with a straight face, told my son wwhen he was small which he at the time believed)

Frankly if you can fool them with Easter Bunnies , Tooth Fairies and Santas a little deception with science is simple.

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Replying to Lone_Wolf:
RLI
By lionofludesch
22nd Oct 2019 18:25

Lone_Wolf wrote:

'twas, but that Newton fellow took all the credit for it.

He invented catflaps as well. Very versatile.

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By mrshamilton
22nd Oct 2019 11:53

Thank you for giving us a good laugh in the office too!

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7om
By Tom 7000
25th Oct 2019 12:30

Did they cost lees than £50 then its a trivial benefit.
If they cost more then its allowed for Direct tax you just have to pop the cost on the employees p11ds....

If its for non employees... I think that's entertaining, because if its not what is it?

Oh that's what everyone else said... :(

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