I am afraid business entertainment is not allowable as a deduction against profits. Business entertainment is defined as the provision of free or subsidised hospitality or entertainment. The person being entertained may be a customer, supplier or any other person that is not an employee of the business.
In addition, any expenses ‘incidental’ to the entertainment, such as a train ticket to get them to the event, are not tax deductible either.
And finally, VAT can also not be recovered on business entertainment- although you are unlikely to incur too much VAT.
In future, I would recommend that you discuss the tax deductibility and VAT recoverability with your local TaxAssist Accountant, before actually incurring the expenditure.
By Jo Nockels
Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.