Tips

KK337KK337 Just JoinedPosts: 1Registered
Hello all

Please help! A client of mine has been putting through meals as entertaining for customers which is fine. However the tips she leaves I have been coding to her DLA as I thought you couldnt claim these as a business expense. Is this right???!!! She wants to know why she can't claim them and I don't know!

Comments

  • Anne BoleynAnne Boleyn Well-Known Posts: 196Registered
    Tips

    Hi,

    This is the first time I have posted but as far as I am aware, client entertaining is not an allowable expense either so the whole bill should be posted as drawings (or DLA).
  • BluewednesdayBluewednesday Font Of All Knowledge Posts: 1,624Registered
    It can be coded as client entertaining and put in the profit and loss but it will be added back in the tax computation so you can put the tips into entertainment a well.
  • DavePDaveP Feels At Home Posts: 79Registered
    I agree with BlueWednesday.

    Even though entertaining is not tax deductible it is still a business expense (including tip) and therefore the company should be footing the bill and not the director.
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