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xmas party - expense

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    xmas party - expense

    Hi, im new to contracting and finding my feet.

    quick question, if i wanted to have a xmas meal with partner (less than £150) i have read i can claim x amount back, do i just get the VAT back? (im registered for FRS) or the whole value?

    do/can i use the company bank card? or personal and expense it?

    thanks in advance

    #2
    Originally posted by oxon1985 View Post
    Hi, im new to contracting and finding my feet.

    quick question, if i wanted to have a xmas meal with partner (less than £150) i have read i can claim x amount back, do i just get the VAT back? (im registered for FRS) or the whole value?

    do/can i use the company bank card? or personal and expense it?

    thanks in advance
    Doesn't matter who pays.
    Forget VAT if you're FRS. You already know this of course as you're already on FRS.
    If you pay you can claim as a personal expense from the company. The company counts it as business entertainment so no further relief.
    You must have receipts. You can only claim what's on your receipts.
    See You Next Tuesday

    Comment


      #3
      YourCo can pay for an annual event for its employees so long as the cost per head (including any other guests) is not more than £150.

      As you're on the FRS YourCo will not be able to reclaim any VAT on this amount however it will be an allowable expense for CT purposes without incurring any BIK charge on you personally.

      The event should be an annual event (you could have multiple: e.g. a summer BBQ and an Xmas party) and its primary purpose should be for the entertainment of its employees (and it must be open to all of them).

      As such, this does not preclude inviting a guest that isn't an employee - there's no set limit on guests - but its all relative. An Xmas party for company with 100 employees plus some clients/suppliers would probably meet this test, a company with one director and no employees would probably only get away with inviting their partner or spouse.

      If you have more than one event, the £150 limit is split between them.

      I'm not sure it matters if you pay for it yourself and YourCo reimburses you but personally I'd try and put it on the company card so its clear that YourCo is paying for the event and you're not just claiming back the costs of a random meal from YourCo.

      Comment


        #4
        Originally posted by Lance View Post
        The company counts it as business entertainment so no further relief.
        It would not be business entertainment. OP is not entertaining clients. Their employer is paying for an annual event (Christmas party/meal) for its employee and one guest. It would qualify for a CT deduction so long as its within the limits.

        Comment


          #5
          Please think about using the search function to look for commonly asked questions. As you can imagine this is done to death every year.

          The best method of searching the forums can be found in this link.

          http://forums.contractoruk.com/welco...uk-forums.html

          Thanks
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Should the threads you find using the search not answer all your questions there is always you accountant you can ask.
            'CUK forum personality of 2011 - Winner - Yes really!!!!

            Comment


              #7
              Originally posted by TheCyclingProgrammer View Post
              It would not be business entertainment. OP is not entertaining clients. Their employer is paying for an annual event (Christmas party/meal) for its employee and one guest. It would qualify for a CT deduction so long as its within the limits.
              quite right. My bad.
              See You Next Tuesday

              Comment


                #8
                Originally posted by Lance View Post
                quite right. My bad.
                And people complain about me telling OP's to go ask their accountant
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #9
                  Originally posted by TheCyclingProgrammer View Post
                  It would not be business entertainment. OP is not entertaining clients. Their employer is paying for an annual event (Christmas party/meal) for its employee and one guest. It would qualify for a CT deduction so long as its within the limits.
                  quite right. My bad. I got confused as I took a client on my staff party earlier in the year.
                  See You Next Tuesday

                  Comment


                    #10
                    Originally posted by northernladuk View Post
                    And people complain about me telling OP's to go ask their accountant
                    It could be worse, you could be telling them to ask Lance.
                    The greatest trick the devil ever pulled was convincing the world that he didn't exist

                    Comment

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