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KK337
KK337 Registered Posts: 1 New contributor 🐸
in General accounting discussion
Hello all

Please help! A client of mine has been putting through meals as entertaining for customers which is fine. However the tips she leaves I have been coding to her DLA as I thought you couldnt claim these as a business expense. Is this right???!!! She wants to know why she can't claim them and I don't know!

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  • Anne Boleyn
    Anne Boleyn Registered Posts: 196 Dedicated contributor 🦉
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    Tips

    Hi,

    This is the first time I have posted but as far as I am aware, client entertaining is not an allowable expense either so the whole bill should be posted as drawings (or DLA).
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624 Beyond epic contributor 🧙‍♂️
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    It can be coded as client entertaining and put in the profit and loss but it will be added back in the tax computation so you can put the tips into entertainment a well.
  • DaveP
    DaveP Registered Posts: 79 Regular contributor ⭐
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    I agree with BlueWednesday.

    Even though entertaining is not tax deductible it is still a business expense (including tip) and therefore the company should be footing the bill and not the director.

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