Originally posted by Neo
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Evidence for Client Entertainment Expenses"
Collapse
-
-
Originally posted by Neo View PostSo, what's to stop someone illicitly claiming every restaurant meal with their partner and every coffee shop visit at the weekend as a business entertaining expense? (Apart from moral obligation)
Leave a comment:
-
...
Originally posted by Neo View PostSo, what's to stop someone illicitly claiming every restaurant meal with their partner and every coffee shop visit at the weekend as a business entertaining expense? (Apart from moral obligation)
Leave a comment:
-
Originally posted by Sockpuppet View PostDo as a business would do. Plenty of the DHL directors that have taken me out for a meal don't record that it was me they were buying food for. They also don't take a head count when a £600 bill comes their way.
Leave a comment:
-
Just to add to make life easier for yourself in many ways having evidence of doing things including an email is a good idea.
That's of course unless you are doing something dodgy then you don't want to even have phone records..........
Leave a comment:
-
Originally posted by northernladuk View PostYou spend £5k a year entertaining customers? I guess you are not just a contractor on a day rate.
I would assume the worst and plan that the HMIT will do whatever is possible to prove your claim if he smells a rat. If it is a genuine claim it will have the documentation he requires so not a problem.
Leave a comment:
-
Originally posted by Neo View PostI've recently been discussing with my accountant about claiming client entertainment expenses, and it seems to boil down to two options:- Claim half of the dinner cost as subsistence.
- Claim the entire amount as client entertaining.
I've worked out that the difference between both cases, once corporation tax and higher rate dividend tax have been taken into account, is that I would be 5% of the meal cost better off if I claimed the entire amount as client entertaining.
If I spend £5000 a year on client entertaining, that's only £250 better off. Doesn't seem worth bothering with and taking the risk with tax inspection. However, there are cases where I might want to claim client entertaining where subsistence is not an option, such as Friday evenings, or even weekends. My accountant has already outlined the nuances in terms of client entertaining being mostly business, mostly social, etc. The question I have for the forum is, having read some articles online (such as this American one that has similar considerations), what level of proof must I have that an evening meal or lunch/dinner at the weekend was client entertaining? Bear in mind I'm an IT contractor. Would an inspector really expect me to produce evidence of e-mails setting up the dinner with my boss, or a list of names of attendees (such as boss and/or other contractors I work with)? Would an inspector ever go as far as contacting those people?
Or, for relatively such small amounts (say, less than £5000 a year), am I being too paranoid?
Thanks in advance.
I would assume the worst and plan that the HMIT will do whatever is possible to prove your claim if he smells a rat. If it is a genuine claim it will have the documentation he requires so not a problem.
Leave a comment:
-
Do as a business would do. Plenty of the DHL directors that have taken me out for a meal don't record that it was me they were buying food for. They also don't take a head count when a £600 bill comes their way.
Leave a comment:
-
Evidence for Client Entertainment Expenses
I've recently been discussing with my accountant about claiming client entertainment expenses, and it seems to boil down to two options:- Claim half of the dinner cost as subsistence.
- Claim the entire amount as client entertaining.
I've worked out that the difference between both cases, once corporation tax and higher rate dividend tax have been taken into account, is that I would be 5% of the meal cost better off if I claimed the entire amount as client entertaining.
If I spend £5000 a year on client entertaining, that's only £250 better off. Doesn't seem worth bothering with and taking the risk with tax inspection. However, there are cases where I might want to claim client entertaining where subsistence is not an option, such as Friday evenings, or even weekends. My accountant has already outlined the nuances in terms of client entertaining being mostly business, mostly social, etc. The question I have for the forum is, having read some articles online (such as this American one that has similar considerations), what level of proof must I have that an evening meal or lunch/dinner at the weekend was client entertaining? Bear in mind I'm an IT contractor. Would an inspector really expect me to produce evidence of e-mails setting up the dinner with my boss, or a list of names of attendees (such as boss and/or other contractors I work with)? Would an inspector ever go as far as contacting those people?
Or, for relatively such small amounts (say, less than £5000 a year), am I being too paranoid?
Thanks in advance.
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: