PSA and Entertaining

PSA and Entertaining

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I am gathering data for my firm's PAYE Settlement Agreement Declaration, which primarily relates to Entertaining.

My question is, if two staff members go out for lunch to be paid for by the company, discussing work, is this classified as staff entertaining?  For example, a board lunch.  I would argue it is business related, therefore shouldn't be declared and, as an aside, an allowable deduction for CT purposes.

At present, I am simply declaring costs of meals provided as rewards for meeting targets etc.

If anyone can clarify, that would be great!

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By thisistibi
19th Jul 2012 13:46

Yes

On that basis, I would argue that all employee lunch costs are deductible for CT purposes, and not a BIK, because people tend to talk about work with their colleagues...

But on a more serious note, yes it's staff entertaining. The only exceptions are described in EIM21670 and EIM21671.

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