Corporate Entertaining and VAT Recovery

I am completing my VAT return and I am not sure if I can claim the VAT back on the hampers sent to some customers and hiring a corporate box at the Boxing Day football match we attended with some customers.

1st February 2010

If gifts to individuals do not total more than 50 in a 12 month period then the VAT can be reclaimed on the expenses incurred. 

However, there is an exception to this which is that VAT cannot be reclaimed on items that are classed as alcohol tobacco and food. Therefore it is unlikely that you will be able to reclaim the VAT on the hampers.

With regard to the costs relating to to the hire of the corporate box at the football match, you are not able to reclaim any input VAT as the costs will be considered to be entertaining which is specifically blocked.  If you have employees there as guests rather than hosts then you will be able to reclaim their proportion of the VAT.

By Jo Nockels

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