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Travel, Entertaining & hotels

Travel. entertaining & hotels

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When analysing claimed busness expenses I generally treat overnight hotel stays as travel, VAT claimable, deductable expense for corporation tax.

Drinks & diners usually entertaining if evident includes customer.

If the hotel bill only needed because of entertainment  nature of meeting should the hotel be considered an entertainment expense also?

I would be interested in other persons views on this.

 

 

Replies (6)

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Hallerud at Easter
By DJKL
10th Aug 2017 16:49

Careful how you phrase question to client as to whether the hotel was needed for entertainment, especially if question is asked whilst his/her other half is in the vicinity.

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By Portia Nina Levin
10th Aug 2017 16:52

I so enjoy some of the little soirées I have with some of my selected clients.

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By CJaneH
10th Aug 2017 16:58

I was referring to the diner and not being sensible to drive home after!

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By andy.partridge
10th Aug 2017 17:11

Yes, whenever I have had a drink I shouldn't have I always get a hotel room rather than a taxi. I should really ask my wife to come and pick me up instead but a) she doesn't do a good fireman's lift and b) she might ask who the blonde is.

Costs related to entertaining are entertaining, but you might need to distinguish between staff and director expenses.

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By Portia Nina Levin
10th Aug 2017 17:19

Costs related to entertaining aren't entertaining. Unless the hotel room is being used for entertaining, which the OP strenuously denies. it's allowable.

The questions are:

1) is the expenditure incurred wholly and exclusively for the purposes of the trade? The answer generally being yes for all costs of and related to business entertaining.

2) is it expenditure on business entertainment. Not unless the client stayed overnight!

Obviously HMRC might assert something different, but they'd be wrong.

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By andy.partridge
10th Aug 2017 18:13

The strenuous denial was far too subtle for me, or are you suggesting there should be a strenuous denial irrespective of the facts? (hic!)

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