Client "smoozing" On MyCo's Tab

[JamJarST]

I've put cash towards leaving meals I've had with clientco staff in the past. I've not paid for the lot, rather subsidised the evening, which most of them were genuinely appreciative of and I don't think it came across as show off-ish. I didn't make a big song and dance about me paying for it when the bill came instead I paid a chunk off part way through the evening so that when the bill was presented at the end it was not very much indeed.

I'll have to see if the bar at the German Market in Leeds will do me a receipt when we go on the lash tomorrow night after work

I have done this at most of my clients and the response form the permies has always been very positive. They know I earn a decent day rate and appreciate the gesture.

[northernladuk]

I've put cash towards leaving meals I've had with clientco staff in the past. I've not paid for the lot, rather subsidised the evening, which most of them were genuinely appreciative of and I don't think it came across as show off-ish. I didn't make a big song and dance about me paying for it when the bill came instead I paid a chunk off part way through the evening so that when the bill was presented at the end it was not very much indeed and then got a copy of the receipt and claimed it all against the LTD muahahahah

I'll have to see if the bar at the German Market in Leeds will do me a receipt when we go on the lash tomorrow night after work

FTFY

[Fandango]

I've put cash towards leaving meals I've had with clientco staff in the past. I've not paid for the lot, rather subsidised the evening, which most of them were genuinely appreciative of and I don't think it came across as show off-ish. I didn't make a big song and dance about me paying for it when the bill came instead I paid a chunk off part way through the evening so that when the bill was presented at the end it was not very much indeed.

I'll have to see if the bar at the German Market in Leeds will do me a receipt when we go on the lash tomorrow night after work

[jmo21]

I've thought about doing this a couple of times in contracts but didn't, because frankly, I thought it'd come across as a total show off thing to do.

flashing my contractor cash to permies who probably already think I earn way too much and think they should be employing more permies.

Schmooze a manager who might influence a renewal maybe, but not a whole team, even only 5 or whatever of them.

[northernladuk]

Smart arse, I did do a search, most of the posts was either 2 years old or about staff entertainment (granted I may have searched for Entertainment rather than Client Entertainment but doesn't produce any better results :

I am not sure where the "effective 25%" comes from, and to be honest as I do my own books I like to keep things as simple as possible so for the £50 I might save its too much hassle

The SJD spreadsheet has a client entertainment column so I just slap it in that and forget about it to be honest. That way though, I know the 32k or whatever divis I draw are mine and don't need to spend on client entertainment. Have done the odd decent sized meal this way but pub meals or up to a couple of hundred I just pay myself tbh. As it just goes in the spreadsheet I haven't really thought about the implications too deeply. Just not enough to worry about. It's the cold sweat I get for days due to me actually having to pay for something I have deal with first.

[SimonMac]

It's purely social so different...

Maslins did a quick example of this..



No hassle really. All putting it through the company means is you don't spend your divi money on it.

If you want some fun looking at the arguments about what is social and what you can claim was a business lunch have a look at ...

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Wait for it.....

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Calm down calm down...

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client entertainment site:forums.contractoruk.com/accounting-legal/ - Google Search

Taadaaaa!!

Smart arse, I did do a search, most of the posts was either 2 years old or about staff entertainment (granted I may have searched for Entertainment rather than Client Entertainment but doesn't produce any better results :

I am not sure where the "effective 25%" comes from, and to be honest as I do my own books I like to keep things as simple as possible so for the £50 I might save its too much hassle

[northernladuk]

It's purely social so different...

Maslins did a quick example of this..

It's easiest to explain it with an example. Let's say you make an annual profit of £80k before £1k client entertaining, and draw out as big a dividend as you can. To keep things simple I'll ignore any other tax adjusting items.

If the company pays for it, you make an accounting profit of £79k but a taxable profit of £80k, so you're paying 21% on £80k.

If you pay for it personally, the company makes an accounting and taxable profit of £80k, so the company still pays corporation tax on £80k, the same as above...but you've paid the £1k out of after tax income. For you to get that £1k it suffered the 21% corporation tax, but it also suffered an effective rate of 25% when you drew it out as a dividend.

Hence why (even though disallowable) it's more tax efficient to get the company to pay it.

No hassle really. All putting it through the company means is you don't spend your divi money on it.

If you want some fun looking at the arguments about what is social and what you can claim was a business lunch have a look at ...

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Wait for it.....

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Calm down calm down...

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http://www.google.com/search?hl=en&q...legal%2F&meta=

Taadaaaa!!

[SimonMac]

As Christmas is coming I want to take ClientCo's permie staff out for lunch, been a particularly eventful couple of months and renewal is around the corner so two birds one stone etc, only 5-6 of them and as its gonna be lunch so no more than say £200, is there anything I need to look out for putting it through the company books?

Looking at this HM Revenue & Customs: Entertainment it seems I can pay from personal funds, company reimburses me no tax or NIC to pay but needs to be on my P11D, is this right?

Was hoping I could just throw the company card down and write off the balance from CT but its looking like its more hassle than its worth trying to get the LtdCo to pay for it