Portia Nina Levin wrote:
Then the marginal expense of his being there to watch/show off his horse is a BIK. I suspect the costs would have been no more and no less though.
Sorry Portia, I'm going to act dim here and ask if you can clarify?
I'll give an example.
Director and 2 members of staff go to Cheltenham for the festival, during which the directors personally owned horse is running.
While there he entertains potential clients at the racecourse with food and drink.
In that visit he spent (made up figures here)
£1500 on his own accommodation.
£500 chauffeur limo
£1000 on food & drink for himself and guests.
Is there a BiK element here? I'm wary that the likes of the accommodation could be?
Tim Vane wrote:
I assume you are asking about what BIK implications there are for the director, but your question is not clear. Can you clarify what you believe the issue is?
Apologies for not being clear. Yes you are correct that it's the BiK elements that I feel could be an issue.
Unlike the Interfish ruling there is no business benefit claimed in the horse ownership.
The horse is owned by the director personally, no attempt is made to claim it or any of its costs as a business asset.
The client is a large manufacturing company and directors regularly entertain existing and potential clients with meals & drinks.
During large race meets (Cheltenham etc) the director has spent a number of days there with hotel stays, travel & meals/drinks claimed as business expenses. While there he has definitely entertained clients but I'm wary as to what can and can't be attributed as an expense or what is a benefit.