HMRC Guildelines on alcohol expenses

Discussion in 'Accounts & Finance' started by kavalli, Dec 3, 2009.

  1. kavalli

    kavalli UKBF Newcomer Free Member

    Posts: 1 Likes: 0
    I have seen in many expenses policy the following statement;
    [FONT='Times New Roman','serif']‘’a limit for one pint of beer or glass of wine per[/font]
    [FONT='Times New Roman','serif']person with an evening meal is regarded as reasonable. HMRC regulations require[/font]
    [FONT='Times New Roman','serif']that a “working lunch” must be alcohol free.[/font]’’
    I have searched the HMRC website and cannot find the guideline relating to alcohol limits on expenses does any body have the link or any think to help assist in my search
    Posted: Dec 3, 2009 By: kavalli Member since: Dec 3, 2009
    #1
  2. silklink

    silklink UKBF Newcomer Free Member

    Posts: 348 Likes: 42
    I have worked for many large organisations sho themselves maintain certain rules regarding meal and subsistence expenses. They might, for example, rule that a person can claim a meal and one drink. They might even impose spending limits on the mean and/or drink.

    I think, from an HMRC viewpoint, that the claim must be deemed reasonable.

    Also, the expense is personal to the employee and not the firm because the employee is receiving a tax-free lump some of money when the claim is honoured. So it is for the employee to be able to reasonably justify the extent of the claim with HMRC, as well as the firm's policies. What is reasonable?

    Not sure if this helps :|
    Posted: Dec 4, 2009 By: silklink Member since: Sep 19, 2008
    #2
  3. Kniejas

    Kniejas UKBF Newcomer Free Member

    Posts: 1 Likes: 0
    I want to make some business party and buy some food and alcohol.
    I try to search the HRMC web but nothing to find about the limits.
    Anyone can help?
    Posted: Jul 9, 2010 By: Kniejas Member since: Jul 9, 2010
    #3
  4. kontracta_com

    kontracta_com UKBF Newcomer Free Member

    Posts: 338 Likes: 40
    There won't be anything specifically on what food & booze you can buy for a business event. What you are planning to do falls into business entertainment and there is a fair amount of guidance on it below. The rules are very different between entertaining clients/potential clients and entertaining staff (where the rules are quite stringent for the event to qualify as being staff entertainment). Anyway here goes ....

    http://www.hmrc.gov.uk/manuals/bimmanual/BIM45000.htm

    The VAT aspect of it is here......

    http://www.hmrc.gov.uk/vat/managing/reclaiming/entertainment.htm

    and more in depth here......

    http://customs.hmrc.gov.uk/channels...ntent&id=HMCE_CL_000092&propertyType=document

    and the benefit in kind aspect is explained here ....

    http://www.hmrc.gov.uk/paye/exb/a-z/e/entertainment.htm

    It's a bit of reading but it explains pretty much everything about what you need to know.
    Posted: Jul 9, 2010 By: kontracta_com Member since: Jun 8, 2010
    #4
  5. elainec100@cheapaccounting

    elainec100@cheapaccounting UKBF Newcomer Full Member

    Posts: 13,271 Likes: 2,877
    and client entertaining is not an allowable expense
    Posted: Jul 9, 2010 By: elainec100@cheapaccounting Member since: Nov 4, 2005
    #5
  6. sirearl

    sirearl UKBF Legend Free Member

    Posts: 28,293 Likes: 6,281
    What about food and drink during a business meeting.?

    Earl
    Posted: Jul 9, 2010 By: sirearl Member since: Apr 23, 2007
    #6