I have a client (Ltd Company) sells franchises in his company. He regularly meets with his franchisees in cafes/restaurants for business meetings. Is it acceptable to claim the whole value of these expenses both for tax & VAT purposes? He also occasionally will take his staff to hotels (some local) for training where meals and drinks are purchased again my question above also applies to this.
I have a client (Ltd Company) sells franchises in his company. He regularly meets with his franchisees in cafes/restaurants for business meetings.Is it acceptable to claim the whole value of these expenses both for tax & VAT purposes?
No. You can put this as an expense of the business but it is NOT allowed for tax and VAT purposes.
He also occasionally will take his staff to hotels (some local) for training where meals and drinks are purchased.
Meals incidental to the training are an allowable expense.
Is there a reason that the staff are taken to a hotel rather than the trainer coming to the clients premises which would probably be cheaper.
Is this legitimate or a cunningly disguised jolly?
For more detail on this refer to page 80 of the Expenses and benefits guide in relation to work related training.
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.
