Client Entertainment and Hospitality

Client entertainment means the provision of free or subsidised hospitality or entertainment. The person being entertained may be a customer, a potential customer or any other person.

I was talking with a client and he mentioned that he was having a coffee in a famous coffee shop and bumped into one of his own clients.  They got talking about business and my client ended up buying a coffee and a sandwich for his client.  He asked me if he could claim the cost of this coffee and lunch as a business expense.

The answer is unfortunately NO!

Although many of us have business meetings with clients or potential clients over a drink or dinner, the HMRC in their wisdom have decided that this doesn’t count as a business expenses.  Hospitality is also not allowed, so that rules out hotels, travel, tickets to the football or the theatre.  So be careful how much you spending on client entertainment and hospitality as there is no tax saving for you on these expenses.

Because for your business, basically there’s no such thing as a free lunch.

If you are unsure about what you can claim and what you can’t claim please give me a call on 0116 3677424 or pop into the office.



download Client Entertainment and Hospitality

Client Entertainment and Hospitality

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