Sole Trader buying items for "staff" and customers
lizzy
Registered Posts: 36 Regular contributor ⭐
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
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
0
Comments
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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.0 -
First instincts would be no to any subsistence, but perhaps an allowance for "sweets to children" as they walk around the studio.0
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Thank you both for your input0
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