The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Box 20 of the Employment supplementary page to the Tax Return is a sweep-up for allowable deductions that do not fit into any of the other categories. This includes entertaining expenses, claims for business telephone calls and employee indemnity insurance. The box also includes capital allowance claims for qualifying capital assets purchased by the employee for use in the duties of his employment.
In September 2010, HMRC issued the ‘Expenses and benefits from employment toolkit’ , which is a guide for employers and their advisers on the risks associated with the end of year forms P11D and should help avoid common reporting errors. The toolkit is updated annually.
Entertaining expenses are costs incurred by the employee in entertaining clients or fellow employees (including gifts) during the course of his duties of employment.
The basic principle is that no deduction is allowed for entertaining expenses, unless the conditions in (a), (b) or (c) are met:
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