A Director of Ltd Co is a member of a private club in London which he uses when travelling away from home. Sometimes he stays overnight but mostly uses it to meet his clients. The club sends a monthly statement, detailing food, drinks and accomodation. It is addressed to the Director but the company pays it directly by DD.
Previously these have been entered in the accounts as one supply and the VAT has been reclaimed in full.
I am trying to establish firstly that the company can indeed claim the VAT. I think it would be treated no differently to a hotel bill in the name of an employee and then reimbursed to them. Secondly it seems to me that some of the costs should be treated as entertainment and VAT disallowed. Could someone please confirm this?