What is the accounting treatment?

Expenses / Benefits in Kind / Entertainment

Didn't find your answer?

I'm quite confuse with the accounting treatment of staff expenses, entertainment (staff and business) and benfits in kind. What are the details that differentiate any of them? To which account should they be booked? Can I claim VAT on them? What are the implications for employees of BIK showing on the P11Ds? 

Any information you could provide in order to understand this better it will be much appreciated.

Thank you very much,

David

Replies (15)

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By mrme89
17th Oct 2017 12:45

Your accountant should be able to eradicate all the confusion you have.

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Replying to mrme89:
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By Dmozo
17th Oct 2017 13:11

Thank you for your reply however not very helpful.

Kind regards,
David

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Replying to Dmozo:
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By Paul Hawes
17th Oct 2017 13:21

You won't get an answer more helpful than that. You are not just asking for a nudge in the right direction, you are asking for what would be paid services of an accountant. So go get one.

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Replying to Dmozo:
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By Accountant A
17th Oct 2017 13:27

Dmozo wrote:

Thank you for your reply however not very helpful.

Kind regards,
David

I thought as free advice goes it was pretty good.

What made you think someone who earns a living from advising on tax and finance would sit and write you the definitive guide for free?

EDIT: Just looked at your accounts and the £1.25m loss you made last year. Best advice would be stop entertaining.

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Replying to Accountant A:
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By Dmozo
17th Oct 2017 13:35

Thank you very much for your reply and apologies for asking such a silly question. However, I don't think it was needed a reply like yours.

Did you also look at the 9M investment we have received during the last year?

Did you also have a look to all the media reference we are getting?

Look at our accounts in a couple of years time and then let me know about your advice...

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Replying to Dmozo:
By mrme89
17th Oct 2017 13:40

With such a large investment, accountancy fees should not present a problem should they?

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Replying to mrme89:
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By Dmozo
17th Oct 2017 13:44

Not at all! But that is not the point.

I was not expecting anyone to get annoyed because of my question. I just want to know and add clarification.

As I said, apologies for my question. I will get an accountant and pay for the advise as you suggested.

Kind regards,
David

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Replying to Accountant A:
paddle steamer
By DJKL
18th Oct 2017 23:05

They are stronger than they look, the £2m pref shares are sitting in creditors making the balance sheet look worse than it really is (son of FRS25) plus the accrued pref dividends as interest.

However given KPMG knocked them up the OP ought to be able to go to them; as long as it not their bargain basement platform (or have they stopped doing that) as I did read on a thread here there were some issues reported by some who post on here who have taken over acting for former KPMG smaller clients.

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Replying to mrme89:
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By I'msorryIhaven'taclue
17th Oct 2017 13:29

mrme89 wrote:

Your accountant should be able to eradicate all the confusion you have.

What if he's with Crunch?

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Replying to I'msorryIhaven'taclue:
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By Dmozo
17th Oct 2017 13:49

We are with Xero. Is it Crunch bad?

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Replying to Chipette:
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By Dmozo
17th Oct 2017 14:35

Very helpful!

Thank you,
David

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By kestrepo
17th Oct 2017 14:24

Thought you might be interested in the webinars that HMRC has been running recently:

https://www.gov.uk/guidance/help-and-support-for-employing-people

Among others there is a webinar specifically about staff entertainment.

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By User deleted
18th Oct 2017 21:49

Wow! It's Day 1 at the bookkeeping school for the backward and you're already going to be staying late!

I'm not surprised you're too embarrassed to ask for help. You could open a tab in Firefox in "Privacy Mode" though?

This must be a wind up. I'm calling it.

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