As you cannot re-claim any VAT on Business Entertainment - therefore when posting this expense into Sage, should you post the total amount paid or should this be seperated to account for the VAT seperatley?
I was just reading through the allowable and non allowable business expenses list on the HMRC website - it mentioned that:'entertaining clients, even if such entertainment directly led to new business is not allowable for tax purposes'
Therefore does mean:
- You cannot re-claim VAT? - When completing your corporation Tax - you need to add back this expense? - However can you still account for Business Entertainment as an overhead?
You need to be particularly careful with the last one though as some directors see business entertaining as free reign over company money. If they are benefiting directly at the companies expense for no quantifiable benefit to the company then it ventures into being a benefit in kind for the director (so DLA).
I've had one where the director tried to put his daughters birthday party down as entertaining clients! Guess where that one ended up
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
In this instance I was answering in the question in relation to entertaining clients rather than staff which is quite different.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Happy new year to you too. I was answering question 3 which I have probably read wrong. Thought he was asking in what circumstances can you expense business entertainment. Sorry should have clarified.
-- Edited by meldowie on Sunday 1st of January 2012 04:57:09 PM
