Payment in kind

Dottie

Client is opening new premises and friends have worked unpaid to help them get ready for business. They want to repay them by taking them out for a meal. Is there anyway that this can be an allowable expense or would it have to be treated as entertaining?

Thanks as always.

Dottie

deanshepherd

Unless the friends are going to invoice for the work they did, declare it on their tax returns and accept payment in food rather than cash.. then, no.