What do you think is a "reasonable" amount for client meal/drinks?

[TechJinx]

After the opinion of those who have claimed client entertainment back before from their company.

We had our work meal out on Friday and for expediency (and CC cashback....) I picked up the tab for 30 odd people, ~£1800. The food money of ~£1200 was collected in advance and it's being transferred to me. The management team (including me) said we'd split the drinks part ~£600 between us. (Well I was told that they always do that and contractors are generally encouraged to put a bit more in...)

I've asked my accountant but he's said you cant get an official figure for whats "reasonable" so I was wondering which part of this might look reasonable for me to claim back as I've got all the receipts. I've just secured a 6 month extension which I'm sure is in no way linked to my putting some money behind the bar but who knows....

My date rate is pretty reasonable and I am on the senior management team so it's not a daft suggestion that I might have to put my hand in my pocket around xmas butits my first Xmas as a contractor so not sure what's sensible.

[TheFaQQer]

How many people are on the management team? If it's just the two of you, then £450 out of the £600 would be reasonable to me. If it's ten of you, then pick up less than that.

Pick a number that you are happy with and pay that - since it's not a business expense for corporation tax purposes, and you can't reclaim the VAT on it, it's a question of what you want to pay rather than anything that is related to your accounts.

[TechJinx]

since it's not a business expense for corporation tax purposes, and you can't reclaim the VAT on it, it's a question of what you want to pay rather than anything that is related to your accounts.

But I do get to add it to my personal allowance before paying higher rate which I've hit as I got a payout from my old employer before I started so it does make a bit of difference tax wise

[TheFaQQer]

But I do get to add it to my personal allowance before paying higher rate which I've hit as I got a payout from my old employer before I started so it does make a bit of difference tax wise

So pay £600 then.

[Forbes Young]

After the opinion of those who have claimed client entertainment back before from their company.

We had our work meal out on Friday and for expediency (and CC cashback....) I picked up the tab for 30 odd people, ~£1800. The food money of ~£1200 was collected in advance and it's being transferred to me. The management team (including me) said we'd split the drinks part ~£600 between us. (Well I was told that they always do that and contractors are generally encouraged to put a bit more in...)

I've asked my accountant but he's said you cant get an official figure for whats "reasonable" so I was wondering which part of this might look reasonable for me to claim back as I've got all the receipts. I've just secured a 6 month extension which I'm sure is in no way linked to my putting some money behind the bar but who knows....

My date rate is pretty reasonable and I am on the senior management team so it's not a daft suggestion that I might have to put my hand in my pocket around xmas butits my first Xmas as a contractor so not sure what's sensible.

If you operating as an independent contractor outside of IR35 but are on the client's "senior management team", it doesn't look good from an IR35 perspective. In addition, business entertainment is not tax allowable so you should be including this on your P11D.

[BolshieBastard]

Wow, talk about being superficial.

Seeing as £1200 of the £1800 is being repaid to you, why not just claim the £600 and have done with it?

Personally, I wouldnt be putting my hand in my pocket for Christmas for a couple of reasons but that's just my opinion.

[tarbera]

£600 and don't hassle the other permie SMT for there share, as when they say 'share' they mean the contractors pay

It's a xmas tax on suppliers

[TechJinx]

Wow, talk about being superficial.

I believe thats the point of the "Accounting" forum........

[TechJinx]

If you operating as an independent contractor outside of IR35 but are on the client's "senior management team", it doesn't look good from an IR35 perspective.

nonsense. Interim management, setting up PMOs, programme teams and new departments etc is no different to any other interim stopgap role.

In addition, business entertainment is not tax allowable so you should be including this on your P11D.

No the accountant does - then you pay nothing.
https://www.gov.uk/expenses-and-bene...report-and-pay

[ContrataxLtd]

nonsense. Interim management, setting up PMOs, programme teams and new departments etc is no different to any other interim stopgap role.



No the accountant does - then you pay nothing.
https://www.gov.uk/expenses-and-bene...report-and-pay

You beat me to it TechJinx!

Martin
Contratax Ltd