Sole Trader buying items for "staff" and customers

lizzy Registered Posts: 36 ? ? ?

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
    MarieNoelle Moderator, MAAT, AAT Licensed Accountant Posts: 1,369
    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.
    T.C. Registered, Tutor Posts: 1,448
    First instincts would be no to any subsistence, but perhaps an allowance for "sweets to children" as they walk around the studio.
  • lizzy
    lizzy Registered Posts: 36 ? ? ?
    Thank you both for your input
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