Business Entertainment as an expense

[Nixon Williams]

I know the £150 per head per annum rule for "my" own staff, but what are the rules about entertainment of say a Client ?

I'm taking my client out for a curry next week, IF i pay for it all through my business a/c can I put that down as an expense and therefore avoid the 19% CT on the amount ?

Or does it become BIK as I would have to eat anyway ?

Your company can pay the cost of entertaining but the cost is not allowed for tax purposes and will be added back to the profits.

If it is for business purposes it is still worth doing as you do not suffer personal taxes on the cost.

Alan

[Spartacus]

but don't don't pay much NI to start with - most of my income is from divi which has already been taxed at 19%...

Every little helps. Gives you a few more quid to take as divis before you start paying higher rate tax.

Only if it is genuine client entertaining of course. I am not for one moment advocating putting a few random restaurant bills through the books and calling it entertaining.

[Bluebird]

but don't don't pay much NI to start with - most of my income is from divi which has already been taxed at 19%...

[pickle]

[QUOTE]Of course there is - No NI.[QUOTE]

Or tax at 40%!

[Lockhouse]

...so there's no benifit in putting it thru thr books ?

Of course there is - No NI.

[Bluebird]

...so there's no benifit in putting it thru thr books ?

[ratewhore]

Yes you can put it through the books.

No, you won't be able to offest against CT. Business entertainment gets taken off the accounts AFTER CT is worked out on the profit...

[Bluebird]

I know the £150 per head per annum rule for "my" own staff, but what are the rules about entertainment of say a Client ?

I'm taking my client out for a curry next week, IF i pay for it all through my business a/c can I put that down as an expense and therefore avoid the 19% CT on the amount ?

Or does it become BIK as I would have to eat anyway ?