Employment Tax

Entertainment ― clients

Produced by Tolley
  • 19 Oct 2021 23:26

The following Employment Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Entertainment ― clients
  • Introduction
  • Client entertaining
  • When are the costs of client entertaining deductible for tax and NIC?
  • The purpose of the entertainment
  • Entertainment by third parties
  • Reporting requirements ― employer
  • Business entertaining
  • Non-business entertaining
  • Reporting requirements ― employee

Entertainment ― clients

Introduction

Employers may regularly entertain clients, customers or suppliers. The consequences of such entertainment for both the third parties and any employees of the company are considered within this guidance note.

Entertainment means any provision of hospitality.

HMRC guidance is from EIM32565CT.

Client entertaining

When are the costs of client entertaining deductible for tax and NIC?

Client entertaining is charged as a benefit on employees unless the following applies:

  1. the deduction is disallowed in calculating the employer’s profits from the trade, profession or vocation (eg it can’t be deducted in the employer’s corporate tax return), or

  2. the deduction is disallowed in calculating the employer’s expenses of management or similar, such expenses then being deducted in the employer’s profits from trade, or

  3. the deduction is disallowed in calculating the employer’s relevant shipping profits where that employer Is a tonnage tax company

ITEPA 2003,

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

Think Tax.
Think Tolley.

Critical, comprehensive and up-to-date tax information

TAKE A FREE TRIAL

Popular Articles

Utilising capital losses

Why capital losses are importantCapital losses are usually set against the capital gains that arise in the same year as the loss, reducing the total taxable gains for that year. Losses not used in this fashion are normally carried forward to be set against the next available gains.However, in

04 Ιαν 2022 11:11 | Produced by Tolley Read more Read more

Indexation allowance and rebasing

This guidance note explains the general rules surrounding the availability of indexation allowance on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview of the general position regarding company disposals, please refer to

24 Ιαν 2022 11:41 | Produced by Tolley in association with Jackie Barker of Wells Associates Read more Read more

Tax equalisation

IntroductionTax equalisation is widely used by multi-national companies or group moving employees from one country to another. It is not a statutory concept but is an arrangement between an employer and employee.The idea behind tax equalisation is that an employee accepting an assignment somewhere

18 Οκτ 2021 13:25 | Produced by Tolley Read more Read more