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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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 ?
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
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 ?
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.
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.