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Self-employed rewarding other self-employed - tax-deductible?

Self-employed rewarding other self-employed - tax-

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I have a bit of trouble getting my head around this tax deductible(/non?) question, and I was wondering if the greater minds of accountingweb could help me...

I have a hairdresser (self-employed, sole-trader) who has a salon with chairs rented to other self-employed hairdressers. He has taken the renters/"team members" out for a meal as a reward of a good month/ handed out prizes on best upsells, etc. (let's not get into the conversation of employees vs self-employed. That's a whole different kettle of fish)

My question is - can they claim this back on their tax return, or would this be considered entertainment and thus not allowed? My instinct says it'd be disallowed, but my instinct has been wrong before...

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By Christina H
14th Oct 2016 23:04

They are not employees, so surely it's entertaining and therefore not allowable? However I am not one of the greater minds here...

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By lionofludesch
15th Oct 2016 10:03

Afraid I agree.

These people appear to be UK customers.

Without entering the great employee/self employed debate, I don't see how you could view them otherwise.

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