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Post Info TOPIC: Nominal code Question


Senior Member

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Nominal code Question
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One of my clients has booked tickets for her and her staff to attend an Awards Lunch. What nominal code would you use? Would it be classed as entertainment? 



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could be publicity & advertising (networking)? I use entertainment for clients but depends on the company, have they taken staff out as entertainment previously?

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Master Book-keeper

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You need to be careful with this one. How much are the tickets? Plus same other question as Susan.

Have you had a dig around HMRC?

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



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I've done a search on google but can't find anything.

They are a funeral directors, and the owner of the business is taking herself and two of her staff to the Good Funeral Guide Awards Lunch. It's not networking directly as they aren't there to drum up business, but in a way they are going to try to schmooze within the industry, if you know what I mean, so is a kind of promotion of their business.

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Hi Sammy

Absolutely need the answer to the other questions Sammy. Its difficult to make comment if we dont get the answers to the questions we ask, but on this occasion  as long as you get them for yourself from the client then thats fine - you will see why.

It cannot be counted towards promotion of the business as its (highly) unlikely to get them any business, so its doesnt meet the criteria of advertising. Besides there are rules governing such things as laid down by HMRC - have you had a look round their site? The areas you need to look at are entertaining of course, plus one that crops up around Christmas time when clients start to ask 'can I pay for my staff Christmas meal?' - now I know we are supposed to still be in summer, but the guidelines laid down for such will cover you for this too. If they dont due to the amount spent then you need to consider P11D issues.

Oh go on then - Ive included a link to get you started

www.gov.uk/expenses-benefits-social-functions-parties/overview

Note things like - if they spend on this they cannot also then have a christmas event unless ALL are below the £££ limit!!!!!!!!

The link isnt detailed - you may need to look at the HMRC manuals as well - after having a word with your client.

HTH



-- Edited by Cheshire on Wednesday 27th of July 2016 08:05:15 PM

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



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Thank you, that helps immensely. This is the first year they have ever done it. I know that the accountant deals with the directors P11D but so far there's never been a call for the employees to have them. Their Christmas party is always below the allowance, so I will check that this is definitely for staff as well. I have entered it as Entertainment anyway for now.

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Master Book-keeper

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Don't forget the new payroll changes with the min £8500 reporting being stripped away

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



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That wouldn't have made a difference anyway. Any benefits will have to go on a P11D. If the Director had known about this before April I could have applied for the benefits to be taxed via payroll. As it stands, I'm not 100% sure it's for the staff as well. I have a note to check next time I'm there.

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Master Book-keeper

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Sammy76 wrote:

That wouldn't have made a difference anyway

 

 

I meant for the staff!



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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position

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