Entertainment expenses

[VikG]

For our business we take our suppliers out for dinner. We our out regularly with them.

I understand this is dis allowable for tax calculation but is it a benefit in kind for myself as director or just a disallowable expense that the company can pay for?

Also if there is alcohol on the bill is this a problem?

Finally we have paid for hotel stays for going up to meet suppliers can this be claimed or is this again entertainment?

TIA!

 

[jason@r2abkservices]

Hi

I believe it all should be classed as entertainment and put as a disallowable expense. You can claim for the alcohol with your meal but its not tax deductible.

Your travel should be included as "business travel" and therefore allowable.

Thanks

Jason

 

[VikG]

Thanks for that.

Just to confirm, accommodation counts as travel for the purpose of a meeting?

 

[jason@r2abkservices]

That's correct. Accommodation is classed as a travel expense.

 

[jason@r2abkservices]

Sorry if its accommodation as in hotel stay then its a travel expense.

If you used a hotel for a meeting only then it will not be a travel cost. Your no doubt find a suitable place in your p&l to account for it but I have known it to be classed as a conference cost for example.