Clients hire football box. Intention is for customers to attend, together with hosts from client company. At last minute, customers pull out and tickets are offered to other members of staff as client cannot get refund.
As a result, only attendees are staff. Therefore, this seems to be staff entertaining for PAYE/P11D purposes.
Is there any scope to argue that client's intention was that this should be customer entertaining and therefore, if any benefit charged, only benefit is on additional members of staff who took up offer of free tickets?
I can't see anything to support this contention and fear that the whole amount must be treated as a staff entertainment benefit as no customers attended. Can anyone see any possible ways out here?
Peter Cane
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Replies (3)
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Thanks for comments so far.
Didn't make it clear in original question, but this was actually picked up during a PAYE Employer Compliance Review.
CT files have been archived, but I suspect it was treated as staff entertaining in the comp and allowed.
As far as I'm aware, it was a one off cost.
My gut feel is that there's no way out other than treating it as staff entertaining and the clients will therefore get a tax & NI hit.
Not that clear
The staff have a benefit and so there is a benefit in kind.
Adding back as customer entertaining does not get rid of the P11D requirement. However, could this be one of those items treated as minor and isolated?
Also, was this just a one off or a regular season ticket for the box. If it is a regular season ticket, what is the marginal cost of providing the box for the employees? Could it be nil?
Alternatively, if it is decided that there is a benefit, what about a PAYE Settlement Agreement?
Sorry there are more questions than answers but it just shows how simple these things are!!!
Staff Entertaining
De Facto it was a staff away day. Try to treat it as such. CT deduction and no P11d entries