When does subsistence become entertainment?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
The directors and non-executive directors hold their meetings in London and then go out for an expensive meal afterward. My question is when does subsistence become entertainment? How should this be treated for tax and vat purposes.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:When does subsistence become entertainment?

    I worked for a Limited Company recently and this came up so I checked it with our auditors. Basically if the purpose of the meeting is for business then you are allowed to put this through as an expense and claim back the VAT (our Auditor suggested that letters were sent to formally invite members to the meeting to put it on the correct footing). If the meal was purely for entertaining purposes then you are not allowed to claim the VAT back on entertainment but must put the whole cost through. This is the information I was given when I checked.

    Hope this helps

    Jo

Categories

Privacy Policy