Team lunch business expense?

[SueEllen]

I think the answer was to do it as entertainment rather than an expense. So you can claim it personally from your CO, but it's not an expense you can get CT relief on.

I thought myself and other posters had answered that already?

[Lance]

I thought myself and other posters had answered that already?

they/you had. Not sure if the OP had missed it by his last post.

[SueEllen]

they/you had. Not sure if the OP had missed it by his last post.

Every time I read posts by certain posters I suddenly have lots of sympathy for their accountants.

[Saint John]

Thanks again for your responses.

The general feeling appears to be it would be ok to put the cost through the business but not as a tax deductible expense. This would therefore be classed as an "entertaining expense" which is perfectly acceptable (within limits) with HMRC if the aim of the entertaining is to increase value to the business, for example, aiming to secure a new contract.

However, the 2nd link posted by Northernladuk (thank you for this) states:

"HMRC defines entertainment expenses as those costs you incur when providing either subsidised or free hospitality to clients or staff. Examples of entertaining, whether it is for staff or clients, could include but is not limited to the following: food and drink, theatre or concert tickets, sporting event tickets and use of company assets such as executive suites."

However, my entertainment is neither for clients nor staff, simply for the contractor team that I supervise.

It therefore appears to me to be a difficult argument to win if the tax man comes asking.

[northernladuk]

It therefore appears to me to be a difficult argument to win if the tax man comes asking.

IMO absolutely correct.

And as I said I'd ask why you are bothering. If I had a contractor boss and a load of contractors went out I'd full expect to pay my own way. It makes no sense for the boss contractor to pay. Permie thinking that is.

[MrMarkyMark]

IMO absolutely correct.

And as I said I'd ask why you are bothering. If I had a contractor boss and a load of contractors went out I'd full expect to pay my own way. It makes no sense for the boss contractor to pay. Permie thinking that is.

+1 having led teams of up to 10 contractors, everyone just chips in.
Usually, me having involvement in the recruitment, means they are all more than happy with what they get as a day rate

[Contreras]

Thanks again for your responses.

The general feeling appears to be it would be ok to put the cost through the business but not as a tax deductible expense. This would therefore be classed as an "entertaining expense" which is perfectly acceptable (within limits) with HMRC if the aim of the entertaining is to increase value to the business, for example, aiming to secure a new contract.

Genuine bribes are classed under different rules.