Back to Blog
Uk contractor expenses limits5/19/2023 ![]() One key thing to remember is that when taking clients out, always pay through the business rather than through personal accounts. Unfortunately, in most cases, the cost of entertaining is not tax-deductible, nor is VAT on expenditure recoverable. However, it is still possible to make client entertaining spend more tax efficient. It must be provided for free to count as client entertaining, according to HMRC. Client entertainmentĬlient or business entertaining covers expense occurred when hosting existing clients, potential clients or anyone else who is not an employee. Staff entertainment also has its own rules that need to be considered. What to report and what to pay depends on the type of entertainment, who arranges and who attends. ‘non-business entertainment’ of clients - eg entertaining a business acquaintance for social reasons.'business entertainment’ of clients - eg discussing a particular business project or forming or maintaining a business connection.What actually counts as an entertainment expense?Īccording to HMRC, entertainment can involve eating, drinking and other hospitality such as accommodation or tickets to an event. ![]() It’s important, however, to know what qualifies as an entertainment expense and what you can claim tax relief and VAT on to ensure budgets are maintained and there are no reporting inconsistencies. Rewarding employees for hard work builds loyalty and improves morale, while spending time with clients helps to build and maintain relationships, differentiating you from the competition. Entertaining, whether staff or clients, has been shown to bring multiple benefits.
0 Comments
Read More
Leave a Reply. |