VAT & Staff Entertainment

HadynB

Hi

I can't find a definitive answer to this, so hopefully someone has experience.

I know that there is a £150 limit per head for employee entertainment for tax and NI purposes, and that recovering VAT is allowable for staff entertainment; but does the £150 limit per head apply to the VAT treatment too. Some websites refer to both as one in the same whereas the HMRC site makes no mention of any limits when dealing with VAT.

PGM

I believe its inclusive of VAT. The £150 is the benefit value the employee would get if they were to pay, and obviously as an individual they cannot reclaim vat.

HadynB

Hi

Sorry, I don't think I made myself clear. I just need to know whether there is a limit as to how much staff entertainment you can claim in a year with regards to VAT in comparison to the limit set for tax purposes.