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Entertaining disallowance?

Client unhappy - cannot claim for 'thank you' for use of scaffolding

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Client has rental properties.  One property needed roof repairs.  Neighbour had scaffolding in place and allowed use of it to access roof of rental property.  No charge made by neighbours so client took the neighbours out for expensive meal.  My view is this is disallowable entertaining expenditure. Anyone disagree?

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By Accountant A
06th Aug 2019 15:31

No, I agree with you.

EDIT: For no particularly good technical reason, I'd probably have let a gift of a bottle of wine or two slip through. I'm assuming your client participated in this expensive mean?

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Replying to Accountant A:
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By Vile Nortin Naipaan
06th Aug 2019 15:39

So, you'd allow a business gift, but not entertaining where there has been quid pro quo (albeit probably not strictly contractual, but contracts can be verbal)? See BIM45014 and BIM45065 onwards.

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Replying to Vile Nortin Naipaan:
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By Accountant A
06th Aug 2019 15:54

Vile Nortin Naipaan wrote:

So, you'd allow a business gift, but not entertaining where there has been quid pro quo (albeit probably not strictly contractual, but contracts can be verbal)? See BIM45014 and BIM45065 onwards.

I would in theory but then, if I was planning on working in practice, I would do some CPD/refresher training!

EDIT: Actually, having had a quick look at your links, do they help the OP?

BIM45014 says relief is available where "hospitality is given as part of a contractual arrangement" (which the OP doesn't mention) and none of the 4 exceptions in BIM45065 appear to apply. I'm obviously missing something because you are usually right!

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Replying to Vile Nortin Naipaan:
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By justsotax
06th Aug 2019 15:47

presumably the problem is the quid pro quo part....(is the meal an equivalent value...?!)

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Replying to Vile Nortin Naipaan:
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By TaxAngel
06th Aug 2019 15:49

I'd never seen that guidance before. Thank you. Client was at the meal but I'll check if there was a 'contractual obligation' - for example neighbour might have agreed that he would allow access to scaffolding provided he was taken out for a meal or something similar. Although I'm not sure how we'd be able to demonstrate that the value of meal was sufficient 'quid pro quo' for the access allowed.

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Replying to TaxAngel:
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By Accountant A
06th Aug 2019 16:00

TaxAngel wrote:

I'd never seen that guidance before. Thank you. Client was at the meal but I'll check if there was a 'contractual obligation' - for example neighbour might have agreed that he would allow access to scaffolding provided he was taken out for a meal or something similar. Although I'm not sure how we'd be able to demonstrate that the value of meal was sufficient 'quid pro quo' for the access allowed.

As usual, the facts are everything. I made the cardinal error of reading "'thank you' for use of scaffolding"as implying that the meal was an unexpected "gift" offered after the event.

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Replying to Accountant A:
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By Vile Nortin Naipaan
06th Aug 2019 16:08

Yes, but that's because you weren't there when they had the original conversation, and then they subsequently forgot to mention it until just now.

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Replying to Vile Nortin Naipaan:
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By cormocountry
12th Aug 2019 15:11

This forum needs an eye-roll button..!

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