Retirement dinner and VAT

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:28AM in AAT student discussion
Our company recently held a retirement dinner for our senior salesman at which all the staff - 12 people - plus one guest attended. The guest was not charged for the meal. Can we reclaim the VAT on the meal and related expenses it the total cost came to a little over £1,000.

Can we also claim the VAT on his retirement gift?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Retirement dinner and VAT

    Hi Amos

    Have a read of BIM45033: http://www.hmrc.gov.uk/manuals/bimmanual/BIM45033.htm

    It should answer your question nicely. Hopefully the guest was a partner of an employee?

    With regard to the retirement 'gift' the answer here is no, you cannot recliam the VAT.

    Also, are you aware of 'termination packages' for retiring employees? I think you will find that this gift will be chargable to Income Tax on the employee. Failure to deal with this correctly will result in the employer footing the bill. This sort of thing would be a PAYE complicance officers dream so it's important to get this right.

    Regards

    Dean

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