Sole Trader buying items for "staff" and customers

lizzy

Hi

I think I really know the answer to this but just want to confirm. I have a new client who has an art studio. He has people work for him but not on a regular basis & they are self employed not employed by him. He very often goes out & buys them bits say a Costa coffee & sandwich which he says is allowable - I have told him not & just allowed the bits for him if he is working in an evening.

Also though he buys items such as a pack of Coke/sweets & gives it to clients as they walk around - say usually to any children with them.
He says this has always been allowable but I wouldn't agree.

What does anyone think please??

Many Thanks

MarieNoelle

Hi Lizzy
This may be of help: "BIM45045 - Specific deductions: entertainment: meals provided for non-employees"
It seems it may be allowable in your client's case to pay and claim the subsistence costs of non employees. However I would agree with you regarding little extras for clients and treat it as entertainment.
But you may wait for more expert advice.

T.C.

First instincts would be no to any subsistence, but perhaps an allowance for "sweets to children" as they walk around the studio.

lizzy

Thank you both for your input