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Restaurant bills as "research"

MarieNoelleMarieNoelle Trusted RegularHampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,431
Hi all,
My client (owner manager of Ltd Co) is a marketing consultant working in the food and restaurant industry. Part of her job is to check out the competition and therefore she has submitted claims for restaurant bills. However she usually pays not just for herself but invites along a friend or a family member.
The restaurants are usually based in London where she travels for her clients (away from home).

If she was eating on her own, I believe the costs would be deductible for Corporation Tax .
The extra guests are brought in more for entertainment value rather than for getting a second opinion (my interpretation) so I would be tempted to disallow the whole cost for CT (no sufficient quid pro quo )

If the company pays or reimburses the full cost, does a BIK arise on the client?

I would welcome your views, thank you in advance :)

Comments

  • MarieNoelleMarieNoelle Trusted Regular Hampshire/Surrey borderModerator, MAAT, AAT Licensed Accountant Posts: 1,431

    It fails because of this line 'more for entertainment value'.



    Can the client get their guest to fill out a form / scoring sheet that will contribute towards the report that goes to the client?

    Hmm yes I could suggest this going forward. Thanks @Mickdundee.
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