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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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)?
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.
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.
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)
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.
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..
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.
'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.
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.
'twas, but that Newton fellow took all the credit for it.
He invented catflaps as well. Very versatile.
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... :(