Client Entertainment

[timmyc]

Quick question (or two):

- When reclaiming for client entertainment, can I reclaim gratuity? Does it matter if this shown or not (ie if it was on a credit card receipt it would be shown, if it was a cash tip, it would not)

- From consultancy life I'm used to worrying about alcohol on expenses - are there guidelines or limits? I consider £50 worth of drinks (and no food) with an old client as valid entertainment/prospecting, but would the revenue?

- Other than retaining receipts, any other things to bear in mind when evidencing such expenses?

Cheers

[ratewhore]

You can claim for what you can receipt. Is business that bad you need to reclaim cash tips?

On a related note, any client entertainment is not tax deductable. Meaning it does not get taken off the profit before corp tax is calculated...

[pmeswani]

You can claim for what you can receipt. Is business that bad you need to reclaim cash tips?

On a related note, any client entertainment is not tax deductable. Meaning it does not get taken off the profit before corp tax is calculated...

A friend of mine who runs his own reseller does calim back tips as well. To him, it's a business expense. I personally don't claim back tips on my lunch meals / entertainment, unless it is a service charge.

[ASB]

You can claim for what you can receipt. Is business that bad you need to reclaim cash tips?

On a related note, any client entertainment is not tax deductable. Meaning it does not get taken off the profit before corp tax is calculated...

Unless they are foreign of course.

[ratewhore]

Unless they are foreign of course.

what, the clients?

[ASB]

what, the clients?

Reading it back I don't think that is quite what I meant.

I'm not sure of all the rules related to location etc but when abroad I used to charge various bits of entertainment (e.g. taking Portuguese clients to Euro 2004).

[timmyc]

On a related note, any client entertainment is not tax deductable. Meaning it does not get taken off the profit before corp tax is calculated...

So is there any benefit to reclaiming the costs? As a one-man outfit it's all my money anyway, right?

[Bluebird]

So is there any benefit to reclaiming the costs? As a one-man outfit it's all my money anyway, right?

Well if its through the company you'll only pay 21% tax before the expense, if you take it out of your salary it's more.

If it come out of your dividend distributed monies, then there si no real difference, unless of course you breach the higher level tax threashold.

In my mind though a business expense should be paid for by the company rather than by the "employee".