staff entertaining

bringing the kids - any allowable?

Didn't find your answer?

a client has had their christmas meal, and has taken their kids along, citing they could not get child care

cost for the kids to directors loan - but doesn this affect making a claim for the staff costs or does this make everything disallowable

Replies (8)

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RLI
By lionofludesch
28th Jan 2019 12:53

I like the mixture of singular and plural ("a client", "their Christmas meal", "they could not get childcare") and I'm thinking that maybe single Mum has taken her tribe of a dozen or so kids to McDonalds or summat.

How about giving us sufficient detail to make a proper judgment ?

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Replying to lionofludesch:
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By Crouchy
28th Jan 2019 13:04

a client - one business!

their christmas meal - the christmas meal for that one business and its staff

they could not get childcare - as in the owner of the business

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By Tim Vane
28th Jan 2019 13:23

How about some detail. How many staff v how many kids?

E.g just one director and their kids = all costs disallowed. Two married directors and their kids = all disallowable. Five staff including one with kids = may be allowable

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Replying to Tim Vane:
RLI
By lionofludesch
28th Jan 2019 13:33

I'd go with that.

Single director or married couple taking their kids out = Family Outing in my view. Or as HMRC term it, Taking the Pi, er, Mickey.

Junior employee bringing the kids - probably OK.

Key point for me in first option above is - why not go another day ? Is it because the director wanted to take the kids out on this supposed Xmas junket ?

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Replying to Tim Vane:
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By Crouchy
28th Jan 2019 13:35

two employees
+
two directors - couple
+
directors kids (2)

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Replying to Crouchy:
RLI
By lionofludesch
28th Jan 2019 13:46

Don't think that's enough to disallow the whole shebang.

I'd go with disallowing the kids' share - though treating them as a trivial benefit might be a possibility.

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By Matrix
28th Jan 2019 13:30

Treat them as guests, so staff entertaining but no VAT reclaim. Or trivial benefit.

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By Vile Nortin Naipaan
28th Jan 2019 13:52

I don't think the people numbers matter. And nothing is "disallowable".

IF it is an annual party or similar function and it is a one person band company, and the one person has the party or similar function with their 12 children, then provided the total (VAT-inclusive) cost does not exceed £650, it is not a taxable benefit. You cannot recover any VAT though.

The important part is that it is an annual party or similar function.

If it isn't, then, as Matrix says, you next consider trivial benefits.

On your facts though, and assuming it is an annula party or similar function, with a (VAT-inclusive) cost not in excess of £300, there's no benefit, and one-third of the VAT can be reclaimed.

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