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
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